Annuity rates have fallen by over 50% in the last two decades. In 1990 the single life annuity rate for a man aged 65 was over 15.5%, but today it is estimated that you will need to invest around £26k to receive an annuity of £1000. (ie. About 3.8%) 

This is definitely the result of the Annuity Providers being given a captive market by legislation.

 In order to correct the situation and for pensioners to receive a fair return, it is clear that the captive market needs to be removed. Pensioners need to be given alternative, far more independent, options to encourage Annuity Providers to offer a fair deal.

 Please could you give this your urgent attention as it has got to the point where the incentive to contribute to pension funds has been removed.

Why is this idea important?

This idea is important as it will affect every pensioner. Given that we have already bailed out the financial institutions, it is disgraceful that they can further profit from legislation that forces pensioners to direct their savings for a pitiful return.

Pensioners can get  a 3.8 % return by putting their money in the bank and holding on to the capital themselves.

Give pensioners alternatives and restore the free market. This will encourage better returns.

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