Annuities - the state to provide guaranteed annuity rates
Let’s have a set of annuity rates that are guaranteed by the state , so people know EXACTLY what they will get. The state guarantees to provide you with a pension in exchange for your retirement pot, at guaranteed rates. If insurance companies offer you a better deal – fine, that’s up to you, you can still do that,. This idea is an underpin. Should be available to anyone with any type of retirement money purchase fund – be it personal pension, SIPP, stakeholder, AVCs etc. Exchange part of your fund and keep the rest where it is –offer people chance to hedge their bets. Guaranteed options should offer either flat or increasing pensions, with or without dependant's pension option and with a 5 year guarantee. People need an incentive to save for retirement - market rate annuity rates are too much of a risk - a guaranteed annuity rate might provide this incentive, thus increasing the wealth available to institutions for reinvestment in the economy.
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