Pensions investment dilemma
Article Abstract:
With-profits funds are available for United Kingdom investors using income drawdown schemes. These schemes allow investors to defer buying an annuity which can be done until they are 75-years-old. Less money will be available for buying an annuity if investors use the pension fund to provide an income, but good investment performance can help solve this problem. There is a debate as to whether with-profits funds can provide strong enough returns to protect the purchasing power of an annuity, though they provide some protection by locking in bonuses.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
A time to buy
Article Abstract:
UK annuity rates are rising and this should benefit holders of personal pensions who are purchasing an annuity. Once the annuity has been purchased the rate cannot be changed so the timing of the purchase is important. Annuity rates are not likely to rise further to any great extent until 1998, so there is no need to defer a purchase unless it can be deferred for more than six months. Rates also vary according to providers, and the difference canbe as much as 20%.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Demand grows for investment vehicles. Building for the future. Office vacancy rate continues to climb
- Abstracts: Burton accelerates into last lap. A firmer footing. Feeling the pinch
- Abstracts: The fat cats face a low-fat diet. If you want to be a success. There's no nowt in snout
- Abstracts: The slow-motion investor who's growing fast. Mr Hedge seeks an edge
- Abstracts: Reducing insurance costs. A hand in the corporate pocket. Cause related marketing set to take off