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No Time to Retire

Investment returns for annuities
If you have been saving for a pension for the last twenty years and you are expecting to retire this year with a decent annuity income the plain fact is, you're going to be disappointed. 

There was reasonable growth in equity markets betweem 1990 and 2000, but the ten years since then have been pretty much flat.  The markets that most of your pension fund has invested in have increased and then fallen back dramatically; increased again and then fallen back a second time.  The net result is a stagnant return over the last ten years and therefore there has been no real growth in your pension fund.  This means that there is less money available to purchase an annuity.  On top of this, annuity rates have also fallen so you're hit with a double-whammy.

According to figures from Investment Life and Pensions Moneyfacts, if you had invested £100 per month over the last 20 years, you would have ended up with a very disappointing £40,749.  Using this fund to buy an annuity will generate £624 a year for every £10,00, and therefore you will end up with an annuity income of just £2,542 a year  - less than £50 a week.

Compare this to the annuity you might have receved if you had been 10 years older.  Saving the same £100 a month between 1980 and 2000 would have produced £103,914 by January 2000.  In addition your annuity would have generated £866 for every £10,000 in January 2000, creating a much more respectable annual annuity pension of £8,998 a year or just over £173 a week.

If only we had been born in 1935 instead of 1945!  Such is life.  There's nothing we can do about annuity returns, but there is a lot that can be done to supplement our pensions if we have the mind to.  Retirement Revenue is all about ways in which you can make an additional income.  You have to decide how much you need to retire and work back from there.  Obviously there are many savings that can be made when we are not having to go into work every day, but contrary to that we have more time available to indulge in hobbies, travel and holidays.

The Retirement Revenue community have access to a range of ideas for making extra money, increasing investment returns and making savings - all completely free of charge.  Why not download the free eBook to get some money making ideas.  You can get a copy completely free here - there's no obligation, no commitment, just a few free ideas with our compliments.

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