There are rumblings in the press about a possible downturn in annuity rates. They’ve been on the up for some years so it wouldn’t be a surprise if they dropped now – nothing goes up forever. The real question for me is will they ever come back up again? Life expectancy is rising and annuities pay out until you die – how can it last?
Many people that I have spoken to about their impending retirement have indicated that annuities are very unattractive to them anyway. Perhaps it’s time to pay more attention to the alternatives.