Cashpoint

Annuities, which guarantee you an income in retirement, are becoming less appealing due to a slump in rates.

The shaky economy and falling interest rates have hit sums paid when people cash in their pension pots.

A 65-year-old with a £50,000 pot would have got an average income of £2,573 per year if they’d bought an annuity in January, according to Moneyfacts.co.uk. Now it would be an average £2,195. Over a typical 20-year retirement that would add up to a hefty £7,560 lower income.

These rubbish rates are pushing more people towards opting for income drawdown, says Alliance Trust Savings. This allows savers to take chunks of their pension flexibly, leaving the rest invested and giving individuals control over their pot.

However, there is a risk of running out of money rapidly if people underestimate how long they will live and withdraw too much money quickly. Fees and charges are taken from funds each year, despite how they perform. In leaner years with lower returns, savers will need to ensure they take less out otherwise funds will dwindle fast.

Charlotte Nelson, finance expert at Moneyfacts.co.uk, said: “With rates sliding, it is now even more important than ever to shop around to ensure you get the best deal from your pensions savings.”

Department store chain John Lewis is to hire 3,500 temporary festive workers.

The firm says staff will be needed in stores and depots.

To find out to how to apply for these and other vacancies, check out next Thursday’s Jobs page in the Mirror.