At The Complete Pension Guide 2017, our mission is to help you find the best pension advice and aim to connect you with a specialist that has the ability to find pension solutions suited to your individual needs. As life expectancy has risen in areas such as the Home Counties, there is a real possibility that pension savings could be cut. During the last 12 months, savers are estimated to have experienced a drop of 10% in their pension pots. In austere times, it is clear that finding the best pension advice on offer is of paramount importance. The ongoing Eurozone crisis and the quantitative easing measures of the Bank of England have caused annuity rates to fall rapidly.
There are an estimated 1.7 million postcodes in Britain which are used by insurers to cut thousands of pounds off pension pots in areas considered to be affluent such as Surrey and Middlesex. It is the opinion of insurers that those living in wealthy neighbourhoods live longer than the average life expectancy. As a result, these individuals claim their income for longer and thus are deserving of lower monthly payments.
Government statistics released in April 2017 show that a 65 year old man living in a supposedly wealthy area is expected to live until the age of 84. This is good news for insurers but emphasises the need for top notch pension advice. In areas where the standard of living is considered to be lower, the average life expectancy falls by over three and a half years. According to financial experts, those who are diligent and put money aside for their pensions are suffering as a result of these statistics and the conduct of insurers.
The use of postcodes to decide a person’s life expectancy has been roundly criticised. Even annuity firm bosses point out that two people living side by side in the same neighbourhood could have completely different lifestyles, health issues and life expectancies. Because of the lottery of postcodes, the only way to come out on top is by looking for the best pension advice and finding pension options suited to your specific needs.
There are firms that offer annuity boosts to individuals who smoke or have an illness. In some cases, these boosts could be worth up to 50% and remove the need to use an address to come up with a random life expectancy figure. Approximately 60% of UK residents are eligible for an annuity enhancement but only 20% apply according to industry figures.
In 1990, annuity rates were at a level where a £100,000 pension pot was worth approximately £15,600 a year in cash. Today, the same pot gets you just £5,300. The nation’s biggest insurers are cutting their rates and a 65 year old person with a £100,000 pot needs to live another 19 years just to break even. If you have been wise enough to save money for the future or are planning to, talk to us today and we will find you the best pension advice. We specialise in pairing customers with pension advice experts and help them reap the rewards of prudent savings in retirement.
This article has been written in good faith. It is believed to be accurate at the time of writing and is for information only.