How to beat the system with an annuity

The answer unfortunately is quite simple – live to 116!Old Man Yoga Beach Photos8

The Daily Telegraph worked out that if Jiroemon Kimura, the world’s oldest man who died at the age of 116 in June, had taken out an annuity when he retired, he would have got back £2.1 million from an inflation-linked annuity. However, he would have only paid £460,000 for the annuity.

That shows how well you do when you ‘beat the actuaries’ – but most of us won’t, or not by enough to match Mr Kimura. The actuaries now say someone aged 65 today will live to age 86. Too often we still meet people at retirement who refuse to concede that they will live that long in retirement. Failing to do so risks a real shortfall in income, spending power or both.

As the Daily Telegraph says, the new pattern for a lot of people is for a retirement pension to be topped up with part-time work. Like Mr Kimura, who went on helping on his son’s farm up to the age of 90.

For those that want to maximise their income and choices when they want to stop working we offer the 44 Financial Annuity Service. It’s like sat-nav for your retirement. We’ll guide you through the pensions maze and make sure you make the best decisions for your circumstances. Call us on 0116 380 0133 for an initial chat – at our expense.

Steve Clark

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