Should deflation hit us, it could wreak havoc with retirement plans, especially if the problem carries on for years. As prices on the high street fall, so will profits and the value of stock market investments.

As many individuals rely on shares to fund pension growth, therefore many savers will have their retirement plans thrown into turmoil. Falling share prices have already wiped nearly 25% off the average personal pension fund in the past twelve months.

Anyone getting close to retirement should consider locking into a pension annuity sooner rather than later to gain the benefit of existing annuity rates. Naturally this is a better move for you if your pension fund has not been decimated by the recent stock market turmoil we have witnessed. It is anticipated that pension annuity rates could well fall over the coming months.

If you can afford to, deferring taking your state pension could also help. You could increase your  retirement income by 10.4 per cent for each year you defer taking your pension.

We’ve said it before, and we’ll say it again. Take advice and really get to grips with the opportunities open to you.

Aegon chief executive Otto Thoresen has called for a new pensions A-day in order to tackle the pensions income gap. He also urged a review of forced annuity purchase at age 75 at the conference of the Association of British Insurers (ABI).

He told the conference that there should be a change to pension rules, this time not for those who are saving for retirement, but for those who, having retired already, are investing to fund their retirement. He stated that the customer be at the heart of this review by by empathising with them, putting ourselves in their position. He suggested we should think their thoughts; share their aspirations rather than dismissing them; and consider the challenges that their lives pose. Having the right products and rules is only part of the overall solution for retirees, he said.

Thoresen stated that a valuable new insight for both policy makers and financial service companies is required, and on advice guidance and help, product service and design; and on the underlying framework of retirement decision making. Further, he considered the rule forcing a pension annuity purchase at 75 is out of step with reality. 

He called annuity rules inflexible and said they must now address the reality that longevity is no longer the only significant aspect in retirement.

Let’s hope that, in time, somebody listens to his ideas.

It is becoming apparent that pension annuity buyers are becoming wary of the turbulent economy. Many people approaching retirement are putting off buying their pension annuity retirement income while they wait for an end to the current stock market volatility we are witnessing, experts say.

A discussion that took place at Prudential’s annuities round table also revealed that many in the pensions industry support the Financial Services Authority (FSA) taking action against insurance companies who fail to take on board the Association of British Insurer’s (ABI) ‘Options’ initiative.

The meeting of annuity providers and advisers suggested a new approach was needed when it came to retirement income planning so retirees can become more involved in managing their pension and retirement options.

Many people saving for retirement do not make a direct link between their pension and stockmarket risks, this panel stated, and, as a result, these people do not shift their investments out of equities and into cash in the run up to retirement.

There has also been a rise in the number of clients cancelling annuity quotes as they reconsider their options and put off their retirement plans, though the annuity market has held up relatively well since the onset of the credit crunch.

The swift market falls and increased uncertainty have resulted in a very slight slow down in pension annuity sales as customers consider delaying their retirement plans, according to leading annuity provider, Prudential.

The annuity industry needs to do more to help consumers, and better public education regarding the benefits associated with buying an annuity is also needed. Unfortunately, a great number of people think annuities are a rip-off and that is still something the industry needs to work against.

We are seeing interest rates around the world tumble. So, if you are reasonably happy with the size of your pension fund, it might make sense to buy your pension annuity now, as it is likely that annuity rates are set to tumble.

Annuity rates have risen marginally over the past twelve months, but are expected to fall as interest rates decline. This means you will get a smaller retirement income from the same-sized pension fund.

All the major annuity providers have been slowly cutting back their rates, so every month that a retiree delays buying an annuity means a lower retirement income.

These rate cuts are expected to continue into 2009, with annuity rates falling by perhaps 10% from where they are now. It is crucial that you shop around before you buy; the average increase you could achieve in your income if you do so is around 20%, but it can be a lot more.

Peruse this website, then let Origen shop around for you for the best annuity rates.

Now that we have expanded both the information and range of services available via this website we need to know if it is right for you.

Is it better that we offer you more than just the chance to buy a pension annuity? Do you want to receive full advice? Might you be of a mind that face to face advice is right for this important time in your life? Is the website easy to use, or too complicated?

Whatever your views, let us know. Send an e-mail to enquiries@rightannuity.co.uk . Maybe we are missing something. If so, what?

We want to ensure that you, the customer, has in front of them what they need, and what you see with this improved website is just the start.