Originally posted by xoggoth
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Have you checked if you've got any guarenteed annuity rates? I was going to transfer an old scottish mutual policy, when I actually read it I discovered it has a guranteed annuity rate of 13.9%. -
That's how they manage to offer you 6%, if they didn't keep the pot they'd be offering you 4.Originally posted by xoggoth
timComment
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You're right about yields, its obviously to do with the demographics in this country - quite simply, people are living longer and so the money has got to last longer - that's not going to change going forward.Originally posted by xoggoth
However, with regard to your last comment about them keeping it all when you snuff it - most definately not true. Following on from psns simplification last yr, there are plenty of options available to you both pre and post retirement about what you can do with the funds and who gets them if you die.Comment
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No they don't. If you live longer than average you get a share of the proceeds from those that died early, if you die sooner than average they get a share of yours. It's a fair deal, and a mathematically beautiful solution to ensure that on average across all possible futures you spend your last pound on the day you die. There is no way you can simulate this benefit by managing your finances in isolation.And they keep it all when you snuff it.
Obviously the pension company gets a percentage of funds under management, but the market is competitive so their rake-off needn't be excessive.Last edited by IR35 Avoider; 17 April 2007, 11:48.Comment
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