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Many expats will be aware that annuity rates have been on the decline for a generation leaving many retirees with disappointingly low income in retirement.
A new report by pensions experts Prudential and MGM Advantage explains that in just two years the total retirement income has dropped £10 000 for the save pension pot.
The new will be of particular interest to expats with many expat and offshore pension products coming without the requirement to purchase an annuity.
A key reason cited by expatriates for transferring their UK pension into a QROP scheme is this lack of a requirement giving them more flexibility as well as a better income upon retirement.
The report stated, "Alternative options such as investment-linked annuities can produce better outcomes for many pensioners by combining the peace of mind of an income for life with the potential for future income growth and flexibility,
"However these policies are not without risk, and it is important that investors fully understand all the risks associated with these options."
The report authors have made clear that anyone looking to choose an option other than a simple annuity need to be fully engaged with the process and seek reputable advice from the financial advisory industry.
Expats looking to transfer their UK pensions offshore should always consult an expat specialist Independent Financial Advisor.