This is all based around the premise that maybe, just maybe, stockmarkets have bottomed out. Many serious investment periodicals are suggesting that they have, and, if so, should you remain invested to boost the value of your pension fund and get yourself a bigger pension annuity income? Should you abandon all thoughts of pension annuities for the time being?
If you use your pension fund now to buy your annuity you are effectively crystallising a loss. You are spending your pension fund money at a time when it has probably suffered a drop in value. So, should you consider an alternative retirement solution, a different pension option, to give your fund time to recover?
Should you opt for an income drawdown arrangement which allows you to take an income whilst leaving your fund invested?
Or, should you simply defer your annuity purchase in the hope that your pension fund might recover. Can you afford to do this?
If the experts are right you might do well to abandon thoughts of annuity rates and annuity quotes and give your pension fund time to recover.
