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Guarantee Your Retirement Income - UK Annuity Guide 2025

Proper Money UK 5 views

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i'm enjoying your channel and this video is superb question: do you think insurance companies' actuaries in the UK have begun to price in anticipated big longevity improvements in the coming years? an annuity rate for someone aged 62 (with inflation increases up to 3 pa) is currently on offer at about 5 of the principal paid that sounds like a very good deal to me, and i am not sure it will stay this high as the science of longer, healthy life begins to bear fruit
Comment from : @daisuke4890

I’m lucky enough to know all this already, but I have to say that I think this is almost certainly the greatest YouTube video explanation of anything that I’ve ever seen Zero waffle and perfect clarity and (fast) pacing Quite exceptional As a teacher myself I am deeply impressed
Comment from : @davidseymour6246

Great explanationbrbrThanks
Comment from : @nishideeptewari

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money I started investing with $120k and in the first 2 months , my portfolio was reading $274,800 Crazy right!, I decided to reinvest my profit and gets more interesting For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family
Comment from : @NaufalKnoechel

I’m 58 and nearing retirement, but with inflation and rising costs, I’m unsure how to ensure steady income during retirement Annuities sound promising, but I don’t fully understand how they work Can they really guarantee income for life?
Comment from : @Bigwilli123

Comments show how misunderstood the benefits of annuities are as you get older
Comment from : @evilzzzability

I think annuities are not a good investment now that drawdown is available if you want to maximise your retirement income If you’re not up to doing it yourself and ok with being on a fixed income that gets eaten away by inflation every year have at it And before anyone chimes in about annuities that go up every year the starting income is so small it’s not worth it
Comment from : @sid35gb

I don't trust anything that is complicated the main beneficiary is the annuity provider
Comment from : @zerosumequation

I have recently wondered whether annuities could provide a potential solution to longevity risk in relation to pension drawdown The ideal product would be an annuity purchased at say 60 but paying out from age 80, as this would have potential of efficiently pooling the longevity risk making the rates very competitive This would minimise the amount of the fund ring fenced in case we might live to 100, allowing remainder of fund to be confidently spent and enjoyed in the years of better health
Comment from : @andrewstrand2748

Insurance companies are in business to make money, not to benefit you
Comment from : @LiberateThePlanet

I don't get why are people so focused on getting a return on an annuity The whole point of it is to just provide an income When you're dead you don't need the income, nor would you care if you achieved a return on it
Comment from : @OneAndOnlyMe

Complete rip offs
Comment from : @369dabbler

I have never understood annuities (I understand the product, just not why you would use one) If you want guaranteed income buy a bond ladder You might get a little less (minimal fees however), but if you die, the rest of the ladder is still there to be passed on
Comment from : @davidcalder8912

A good IFA firm and paying a bit more for active management of your investments in draw down is always going to give you a better income I guess now there’s going to be IHT on death makes it more problematic So Iam going to save my kids the worry by making sure I spend it all😂
Comment from : @gdrums7733

What hasn't been mentioned here is that you can also take out 'with profits' and unit linked annuities, which potentially offer a higher return than gilt based ones There is, strangely, very little public information available on these types of annuity, but they may be a good idea if you wish to combine the certainty of an annuity return with the investment potential of stock market investments Obviously this would mean higher risk, but no higher than if you were drawing down
Comment from : @tancreddehauteville764

Joint annuities are never a good idea, for men anyway Better value is to add a 20 year guarantee, which works out as cheaper Also, you need weigh up the pros and cons of a flat rate annuity versus an escalating one In most cases a flat rate annuity will provide a higher income for you for the first 20 years of taking it, which makes sense as are you more likely to spend more in your younger years of retirement, and in later years you may benefit from an inheritance anyway
Comment from : @tancreddehauteville764

As i see it the financial services industry is the main selling and driving force of Drawdown, they will be doing this mainly for their own benefit first They want you to buy the best product that keeps them in business and earning a living Thats not an Annuity
Comment from : @DeeCee-nb6ev

Interesting about splitting the income between myself and my partner to reduce income tax On the face of it as you say annuity returns don’t come close to keeping money invested in equities (plus bonds), but add in say £1-2k tax savings by splitting income like that and they look a bit better Time to crank some numbers…
Comment from : @simonchetwynd

Personally I wouldn't touch an annuity a life time of investing to hand it over to a third partynot for me I'd prefer control of my finances in retirement
Comment from : @pip1723

Hi, how much would it cost for Financial Advisor to transfer Aviva matured personal pension pot to the Vanguard SIPP Flexi Drawdown Policy?
Comment from : @amerasinghamkarunananthan711

An annuity might make sense if you're retiring at the 'normal' retirement age When retiring early, for example at 55 like I am, I've not seen any annuity that gives you good deal You only seem to get the good deals if you're already old and already have some health issues or bad habits like smoking They're a business after all and they prefer it if you die before the money you gave them runs out
Comment from : @farab4391

At last a video on annuity, Probably the route I may go down I want a regular income in retirement and the kids can have the house when I go, the issue with drawdown is you are paying a company yearly to look after your investment which could go down some years Both need thinking about !
Comment from : @alwright8715