No more cat and mouse

Article Abstract:

United Kingdom rules on pension sharing after divorce are changing following a period when settlements tended to ignore pension funds. Wives also often gained a house but not an income, and the pension fund was often undervalued. The law has changed so that pension funds have to be taken into account, and pensions will be split in line with the law two years from 1999. Women may need specialist advice if they are in their 50s and expected to rely on a husband's pension, especially if the pension fund is worth a great deal.

Personal Financial Mgmt, Finance, Personal finance, Divorce

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Avoiding annuities can store up trouble

Article Abstract:

UK annuity rates dropped in Nov 1996, and investors may consider deferring their annuity usingthe income drawdown scheme. This scheme has limitations and is less useful for investors aged 65-years-old or more, due to the way that annuity rates are calculated. Benefits of deferring an annuity decrease as investors age, and pension funds have to outperform the penalty factor of taking an annuity early. Investors with funds of under some 100,000 pounds sterling may also gain little by deferring their annuities.

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Annuities approach an all-time low

Article Abstract:

UK annuity rates have fallen in the UK as the yield from government securities drops. Those near retirement could find themselves locked into a low pension. They can defer buying annuities but this is only recommended for those with large pension funds. Annuities can be purchased that are linked to inflation rates but this option tends to mean a lower annuity at first. UK economic growth and interest rates could rise, as could inflation, and this could mean a rise in annuities for those who can wait.

Prices and rates

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