Incomes British retirees can
hope to get from their pension savings are continuing to decline,
reports MGM Advantage, a retirement income solutions
specialist.
Based on MGM Advantage’s
Annuity Index, which tracks the income paid on enhanced and
conventional annuities on a quarterly basis, between September and
December 2010 the average conventional annuity rate fell by 1.04%
while the average enhanced annuity rate fell by 2.12%.
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Since June 2009, the average
conventional and enhanced rates were down 7.94% (6.06% since
November 2009) and 7.32% (6.07% since November 2009),
respectively.
MGM Advantage also revealed
that the gap between the income paid on top and bottom quartile
conventional annuities is continuing to grow. For example, in
December 2010 the average difference for men was 17.82% compared
with16.26% in September 2010. For women the gap was 17.94% in
December, up from 16.29% in September.
MGM Advantage found that the
difference between an average standard annuity and an average
enhanced annuity was 22.83% in December 2010. The difference
between an average standard annuity and an average enhanced annuity
over the average retirement amounts to £11,682.74 ($18,000) for men
and £13,148.40 for women on pension savings of £50,000, according
to MGM Advantage.
