Dear Annuity Rates Expert

People - Pensioner 676465_53488217_0Dear Annuity Rates Expert,

I am in such a conundrum and I do not know what to do, I have a personal pension and it has an annuity purchase value of around £65,000. I’m almost seventy years old, I’ve no children that depend on me, I live on my own and I am divorced from my husband. My doctor has confirmed that I am in average health for someone of my age and I don’t smoke.

I’ve read the newspapers and watched the news and I can see that there are currently huge drops in the stock market and I wonder if it would be a better idea if I delay taking my pension now, with the hope that there will be greater profits in the future, or is it a better idea that I purchase my annuity now to save myself if the stock market is to fall again.

Of course I would like to leave some money for my children but I’ve already lost nearly £3,000 since my last annuity valuation which was in February 2001.

Please Help!

Concerned Pensioner.

****************************************************************************************

experts puzzleHello,

Please do not be concerned, there are experts out there who can help resolve any confusion and don’t rush into anything. You have up until you are 75 years old to buy an annuity. You still have over 5 years to really think about it and ensure you have made the right decision.

One point of interest is that if you are a smoker you are ironically better off if you did smoke as it is stated that non-smokers live longer than smokers, so you would receive a much better annuity rate.

It is unlikely that annuity rates will drop any lower in the next six years however there is always an outside chance, so you need to think if annuity rates will go much lower. Annuity rate experts will be able to advise you on this.

It is likely that the stock market will rise in the next six years; it is also likely that the stock market will fall in the next six years. A point to note is that if you die before your pension fund had been converted, you heirs will be able to inherit it, however once it has been converted to an annuity the option is then lost.

Kind Regards,

Annuity Experts

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