A lot has been said about pension annuities; is a flexible pension annuity the answer to many people’s concerns. According to enhanced annuity rates provider, MGM Advantage, around 40% of non-retired adults believe that the amount of annuity income they will require as they progress through their retirement will increase. This rises to nearly half of non retired adults aged 55 to 64 years. Just over 22% expects their retirement income requirements to remain the same throughout, while 23% expect them to somehow decrease throughout retirement. Finding suitably flexible annuity products that can meet these changing needs in retirement becomes even more important.
Aston Goodey, of MGM Advantage comments that while it is encouraging that more people are aware of the impact that inflation will have on their annuity income, it is a particular concern that so many have no intention of seeking professional advice. Many people still have unrealistic expectations of the retirement lifestyle they would like to expect and afford. The reality could be very different, particularly if people take the pension annuity income offered by their existing pension provider rather than shopping around for the best annuity rates using the open market option.
He added that another way that people can enhance the level of annuity income they receive in retirement is to select a that maintains exposure to the stock markets. While it does involve some risk, a retirement product like this also has a better chance of generating upside returns, negating the impact of ongoing inflation. MGM Advantage believes that a growing number of retirees will need to keep more of their assets exposed to the stockmarkets, and that this will fuel strong growth for the asset backed pension annuities.
