MILLIONS of Britons will be £500 a year worse off in retirement because of plunging pension annuity rates, new research has found.
The amount being paid out by annuity funds, which provide a regular income from pension pots, has dropped by 4.15 per cent since June.
The lower payouts will leave pensioners receiving around £500 less each year for the rest of their lives – and women will be the biggest losers. The drop in rates has been largely blamed on the Bank of England’s quantitative easing (QE).
Much of the extra money pumped into the economy was used to buy Government bonds which pushed up their value in the short term but reduced the amount they pay out in the longer term.
Because annuity providers use the same investments, the falling worth of the bonds meant that they had to cut the rates for their payouts. Pensions expert Ros Altmann blamed QE for the latest blow to Britain’s long-suffering pensioners….. Click Here to read article direct from the Express.co.uk website.
British expats abroad can now get more control over their pensions plans, thanks to new rules that remove many restrictions for people who retire overseas
They can pay lower tax on income drawn from a relatively new form of pension, avoid being forced to invest capital in an annuity which dies with the purchaser and pass their wealth to friends and family free of tax on death.
Needless to say, these important new opportunities are subject to extensive legislation, which will be discussed in detail later. However, the important point for now is that a Qualifying Recognised Overseas Pension Scheme (QROPS) can enable savers to enjoy the best of both worlds. To Read More about this article please click here to follow link
