An­nu­ity warn­ing for re­tired ex­pats

Yorkshire Post - Property - - PROPERTY -

BRI­TISH peo­ple plan­ning to re­tire abroad in 2014 should be ex­tra care­ful about how they use their pen­sions, af­ter a re­port has shown that an­nu­ities may not be good value for money.

Over­seas Guides Com­pany ed­i­tor Richard Way said: “Many Bri­tish ex­pats rely on reg­u­lar in­come from an an­nu­ity af­ter cash­ing in their pen­sion pots, but un­re­al­is­tic ex­pec­ta­tions about what to­day’s an­nu­ities de­liver could lead to fi­nan­cial hard­ship once over­seas.”

The re­port by the Fi­nan­cial Ser­vices Con­sumer Panel high­lighted how hefty fees charged by some an­nu­ity bro­kers can eat into a pen­sion pot. Th­ese ef­fects can also be com­pounded by a swing in ex­change rates when lo­cal cur­ren­cies are used.

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