Looking at pension annuities; best pension annuity rates important, more so the pension fund, or the size of it. The best pension annuity rates are no good if the fund is just too small. A recent report said the average Briton thinks that accruing savings of around £200,000 by the time they come to retire should be enough for a comfortable life in retirement. But the reality is that based on current annuity rates this figure would only provide an annual annuity income of about £7,000 for men or £6,500 for women. Even if the mortgage has been settled, this figure would do very little to resolve money worries for retirees without other sources of cash.
Added to it would be the state pension, which from next April will be £97.65 a week, or £5,079 a year. These two sums added up still fall far short of what most people imagine they will be planning to retire on. The report suggests that regardless of the age at which people would like to take their retirement, the results of the survey show that the vast majority of Britons are creeping towards retirement poverty. As an example of the extra money needed to boost a pension fund, to reach a £35,000 a year income, experts estimate that we need to be putting aside a massive 320% more for retirement planning than we do currently, and that’s with the best pension annuity rates being utilised. This would create a final fund of about £835,000, which means saving a significant £400,000 more. Actually, as things stand, most retirees would find life in retirement comfortable at somewhere between these two amounts.
