Independent Financial Advisers

A widening gap between the best and worst annuity rates available has highlighted the importance of consumers shopping around for the best deal, according to Investment Life & Pensions Moneyfacts. The difference between the best and worst standard open market rates currently range between 11% and 17%, depending on age and sex, for a £10K purchase price, while the gap rises to between 16% and 22% at the £50K price point.  

The uplift available from an enhanced rate as a result of either health or lifestyle considerations could also radically improve the income payable. "The variance between the best and worst rates plus the wider introduction of postcoded annuities and the growth in enhanced options has produced a more complex annuity market than we have seen previously," said Suzanne Greener, deputy editor of Investment Life & Pensions Moneyfacts. "As a result, pensioners could lose out significantly if they don't take the time to research the best deal for their individual circumstances or take advantage of an adviser's expertise."  

Source: eMoneyfacts 02 Feb 2009

Please note, the information provided does not constitute advice. You should contact us to arrange a financial review should you require any further information.

The financial market has seen and may well still be in the midst of the most significant event for generations. Every one is analysing the reasons, everyone has been hit by it in one way or another. You, like everyone else will have been shocked by it and be uncertain about what to do next. 

So, here are our thoughts: 

We are where we are and in getting there we used the only tools available: 

• Past performance
• Industry standards
• Research
• Experience
• Judgement
• And not least, your investment needs 

To have achieved significantly better returns (or much worse) would have been gambling, pure and simple. 

These tools remain all we have available for planning the future - we have no crystal ball. 

So, using these tools, we have avoided one of the most common mistakes, panic selling after the event. Yet this is not without risks as further falls are possible. 

Therefore what next: 

As you are already "in the market", it is questionable whether you should risk more by investing more now or until we are reasonably certain that the market has bottomed. 

Wait and see. The recent rally should not yet be trusted as a "recovery". 

People fear that they will "miss the bottom" by waiting - you can't, you are already in the market - so the question is, do you wish to risk more until we are certain that a recovery is underway? At this early stage, wait and see seems sound. 

How long should you wait for? At least six months seems sound, we can always review if things change. 

Over the next six months we will: 

• Enjoy the remaining period of good cash returns
• Preserve your cash or have grown it for future "ammunition" if appropriate
• Avoid increasing exposure to any further falls
• Have a much clearer picture than we have today
• Prepare a full plan. 

10/11/2008

Please note, the information provided does not constitute advice. You should contact us to arrange a financial review should you require any further information.