Nearly one million pre-retirees consider annuities.

Pre-retirees, aged over 55 and still in work, are considering annuities for the first time in preparation for their retirement, according to new research. Nearly one million (990,000) people fall under this category. Of these, 16% are thinking of the product due to improved rates against the backdrop of rising living costs. This is in addition to the 828,000 (14%) of working over-55s who had always planned to purchase an annuity in their retirement.

One of the main reasons that people are considering annuities is because of the stability of a guaranteed income, the research highlights. This makes it easier to plan their finances while offering assurances in volatile market conditions. Improved rates (18%) add to the appeal of the product. However, despite their rising popularity, there is still a lack of awareness around annuities.

For instance, of the 20% of pre-retirees who wouldn’t consider an annuity, 16% believed the product offered a bad deal. An additional two out of five pre-retirees (44%) stated that they were interested in having a guaranteed income for the rest of their lives. However, only half of that number wanted or were evaluating an annuity, even though it was specifically designed to achieve this objective.

There is no hard and fast rule when it comes to deciding how to fund your retirement. It is essential to be actively engaged in the process throughout your later life, as what may work well now may not be suitable for the future.

If you’re thinking about securing a guaranteed income through an annuity, it’s important to carefully consider your retirement goals, financial situation and options available to you. An annuity can provide a reliable source of income in retirement, but it may not be the best fit for everyone. Factors to consider include your age, health, life expectancy and other sources of retirement income.

Are you well-prepared for the retirement you want to achieve?
Saving up for retirement is a crucial step to ensure that you can live comfortably in your golden years. Planning and being well-prepared for retirement will ensure you achieve your financial goals and live the life you want. Make sure you receive the right professional financial advice. For more information, please contact us.