Plummeting pension annuities are affecting record numbers of Britons
New data from the 2011 census reveals that record numbers of Britons will reach retirement age this year as the post-war ‘baby boom’ generation turns 65. In fact, the overall number of people turning 65 in 2012 has leapt by 30 per cent in a single year.
This is coinciding with annuity rates dropping by record amounts – seven per cent in three months – and a fall in the value of annuities means reduced pension incomes.
With an unprecedented number of people hitting retirement age and with many set to receive lower than expected retirement incomes, I believe we are entering a toxic new phase of the UK’s pension crisis.
Annuities remain the only viable option for most people at retirement and as annuity rates continue to plummet, and as the number of Brits reaching retirement age grows, more and more will be facing a perfect pensions storm