According to a recent report, close to a million pre-retirees are now considering annuities as an option for the first time as they prepare for the time when they stop working.
The study showed that one out of every six people nearing retirement age who still work are considering annuities because of improved rates in a climate of living costs rising.
Britons working with concerns about the cost of living when they no longer work often consult experts in retirement planning in Shropshire, Hampshire and other parts of the UK. Wealth managers help their clients with both pre- and post-retirement planning to help them ensure they have adequate provisions and can enjoy the lifestyle they seek in later life.
Additionally, 828,000 working people who are over the age of 55 surveyed had always planned to purchase an annuity during retirement. Along with the improvement in rates, 18 per cent of people now looking at an annuity are drawn to them by the stability of receiving a guaranteed income.
A total of 78 per cent of respondent states that this was because a secure income can make it simpler for them to plan their personal finances, while 36 per cent cited the assurances that the product can offer in what has become a volatile market.
However, the report also unearthed that there is a considerable lack of awareness regarding the product. The study showed that one out of five pre-retirees wouldn’t consider buying an annuity because they felt it offers a poor deal.
