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Old 27th Apr 2012, 12:50
  #45 (permalink)  
Al R
 
Join Date: Jul 2007
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Its all relative and there is more to retirement life than AFPS.

The 15 year Gilt yield rate has risen 15% since December, meaning Drawdown or Annuity rates have gone back up. That only helps those with a personal pension mind - sorry. In real world terms (although it now costs more for the g'ment to borrow), a saver* holding back £1000 from a 200k personal pension fund from December and acting now instead of last year will reap an extra £900 a year.

If you're on the verge of annuitising a personal pension or thinking about drawdown, consider dripfeeding the drawdown or only taking an annuity on a portion of it. If you're already in drawdown and move new money into it, the revised annuity rates should apply to the entire amount. Check your scheme rules. Given the Iberian peninsula uncertainty right now, will that situation last? Mmmm.

* Working on the assumption of a 65 year old bloke and various other odds and ends.
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