Though it is always a great idea to shop around before purchasing your annuity to ensure that you have found the best rate for you, putting it off too long in hope that the current market may improve is an incredibly risky venture.
Luckily for recent retirees, according to the daily mail rates have significantly improved by 5-8% since last year, however, choosing to delay an annuity purchase over a long period of time may mean that you could lose out on an income that takes decades to replace. Having a hopeful prospect for higher annuity rates is a great perspective to have. However, letting it take over your retirement plan could backfire, especially if the rates show no sign of improving.
Annuity provider MGM Advantage has recently calculated that if someone was to delay purchasing an annuity for as long as 2 years and no significant improvements in annuity rates have been made, then it could take as long as 41 years to make up for the lost income. If rates were to improve by 6% in that time, it would take roughly 19 years to make up for the lost income.
For advice on how you can enhance your current annuity quotes or for support and guidance during your search for a respectable purchased life annuity rate, talk to a specialist today.