Retirement Line in the news

15 July 2024

Written by Retirement Line

Annuities have become a hot topic in the financial media over the past few years, driven by a significant rise in annuity rates. As a leading authority on the subject, Retirement Line has frequently provided insights on annuities and broader retirement income concerns.

Among the most recent examples, Retirement Line’s Mark Ormston was quoted in a 5 July FT Adviser article on potential tax changes in the wake of Labour's victory in the general election. He said: “There are a good number of unknowns and we hope to find out the scope of their [pensions] review in the coming weeks and months. Pensions tax (in particular on death) is going to be something being watched very closely.”

Mark was also quoted in a 26 April FT Adviser article reporting on retirement income data from the Financial Conduct Authority. He questioned data which appeared to show that fewer people were taking advice or guidance when accessing their pension pot.  

Retirement Line customers featured in The Times

An article in The Times in February featured two of Retirement Line’s customers, who had both taken out an annuity through us. David Hibbs was one of these, with the article explaining what he decided to do with a pension pot worth about £160,000. 

Mr Hibbs’ choice was a lifetime annuity which he chose for guaranteed income instead of investing his pension savings in a drawdownarrangement. He said: “I’m just trying to simplify everything. You never know how long you are going to be able to actively manage things. Some people do enjoy managing investments, but it’s not something I aspire to.”

In the article, Lily Russell-Jones, senior money reporter for The Times, looked at annuity rates. This is what determines how much guaranteed income you can lock in with an annuity: the higher the annuity rate, the more income you’ll guarantee. Annuity rates are linked in part to underlying interest rates, so if interest rates fall, annuity rates tend to follow suit.

The article quoted Mark Ormston with his view of where rates were headed: “I would expect annuity rates to fall once the Bank [of England] cuts the base rate, but I don’t think rates will fall off a cliff. There are lots of factors that affect annuity rates, such as gilt yields.”

The expected interest rate cut didn’t in fact materialise and, as we reported last month, annuity rates actually increased slightly in the first six months of 2024.

The Times article quoted Retirement Line customer John Gibbons with his view of whether potential annuity rate changes were a factor in his decision to buy an annuity: “My view is that if you are happy with what is available take it, because otherwise you are hanging on. I had got to a stage where I was more worried about the value of my pension falling than the rates.”

February’s article in The Times was just one of several looking at the annuity market this year. In April, Retirement Line was asked again to provide data and comment for another article in The Times, following a similar request for an iNews article about annuity rates in January. This came after similar contributions to articles in 2023, including by iNews and This is Money.

With the general election now behind us and ongoing speculation about interest rates, we have no doubt that Retirement Line will continue to contribute to media reports on annuity rates and other pension matters.

Talk to Retirement Line about your annuity options 

If you are considering an annuity for retirement income, our friendly specialists are here to help. They will explain your options and explore how much guaranteed income you could achieve from your pension fund.

You can speak to our team today by calling freephone 0800 652 1316 or request a call back. Alternatively, use our free online tools for an instant estimate of how much annuity income you might expect to achieve.