Consider these Key Drivers:
- Inadequate state pension: The state pension gives all eligible pensioners, and for many, the new state pension is a necessary reform. But the fact is that most people do not support the lifestyle they expect.
- Long live is a habit now: Government statistics show that the life expectancy of men and women in Britain is declining slightly.
- Reduces the annuity rate: The falling interest rate is equal to the inevitable cut in the annual rate. In January 1997, the 000 100,000 pension fund paid more than 000 11,000 to a person over 65. Today, that annuity is less than £ 5,000 (for a single standard living annuity), although the exact amount depends on the health and the type of annuity chosen.
As a result of the lower annuity rate, pension funds are not converted into annuities but continue to earn income that they can use for retirement. The revenue from this is low.