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The advantages of annuities are certainty, simplicity and security — the value of having a known income for life. The downside is they are inflexible — you cannot reverse decisions that later turn out to be wrong or inappropriate in years to come.
As interest rates have increased, annuity rates have also improved over the past 18 months or so, and are looking much more attractive. Financial advisers say annuities are back in the territory where they should always be considered as an option. However, some still don’t think the rates are attractive enough, pointing out that they have risen from an exceptionally low starting point. Meanwhile, the bond outlook is pretty volatile, meaning rates could fluctuate.
If you’re of retirement age, you may be wondering whether to nail annuity rates down now. Would you buy today or put it off until later? Is there value in inflation proofing? Would you prefer to buy one without having to pay for advice?
If you’ve bought an annuity recently, are you regretting it? Or is it giving you valuable peace of mind?
We’d like to hear your views and experiences, plus any concerns or questions you may have about annuities. Please email moira.o’neill@ft.com in confidence.
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