Enable FLP Header Logo

Enable FLP News

Read-up on the latest news from Enable and the industry.

Annuities at the moment

It is common practice as you enter retirement to pull out of the stock market and buy an annuity and   it is usually best to sell shares at the top not the bottom of any cycle but thing do not always go to plan as we know in the financial world, that is where the experience of independent financial advisors like Enable really comes into it’s own.

At the moment the annuity you can get from an insurance company is being affected by the way major investors act. Unfortunately annuity rates being offered can be affected by investors who, worried about global shares, are looking to buy safer investments instead. They are going for gilts, so the price of those is rising and the yields falling. This, in turn, affects annuities and as a result, insurance companies have cut income paid by annuities, according to Billy Burrows, of the Better Retirement Group.

Employees with a workplace final-salary pension are of course better protected from stock market volatility. It is still not really clear how long this volatility will go on for. But financial advisers are suggesting that small investors sit tight at the moment. “People should be looking at the long term,” says Adrian Lowcock, a senior investment adviser.” Mr Gadd says he expects volatility for six months, so investors should ensure their portfolio is diverse. Remember weak markets often offer buying opportunities.” As experienced IFA’s we at Enable always suggest as diverse a portfolio as possible.

Free Consultation

Call Enable FLP today on 01279 755 950 to book your FREE consultancy and to find out how we can make your money work better for you. Alternatively, send us a message by clicking here and one of our financial experts will call you back