More UK retirees are choosing to buy investment annuities in 2011 as they worry about decreasing standard annuity rates and the rising cost of living. Investment annuities can provide customers with a higher income as well as greater flexibility than other annuity options. Experts suggest that sales have increased far beyond anyone’s imagination.

Analysts suggest that the trend will likely continue as people realise that there are better ways to invest their money. Older workers are often aware that they will need their money for twenty or thirty years as they are likely to live longer than ever before. They realise that they need an annuity option to grow their income quickly and easily.

Insurers claim that retirees will need to find more money to cope with the ever increasing living expenses for them and their loved ones. Insurers consider that the UK economy will suffer for the foreseeable future. It is likely that retirees will also be severely affected as they lose the lifestyle that they had when they were working.

Generally retirees need to invest a minimum of £20,000 pounds if they wish to consider investment annuities. If they can afford to invest that much they will likely find that they have made the right decision for their retirement. It is important that people understand the terms before agreeing to them otherwise they will likely pay more for them than they intended to. Experts are available to answer people’s questions and provide them with the information that they need to make the ideal choice for them.

While planning your retirement finances, you cannot and should not overlook annuities. As you take stock of your finances, you will realise where you stand with your savings and investments. You will also realise that this is all the security you have left now, for the rest of your years. A monthly salary is not going to come in, and expenses are not going to disappear overnight. Thus, along with sizing up your pension fund, you should also be looking at annuity comparison websites.

While the annuity rates are FSA regulated, they differ from provider to provider and from policy to policy. And since the type of policy you choose will depend on your particular financial and personal situation, annuity rates differ from person to person.

When you compare annuities, you need to first see the pension you have, and the income you need. Then you need to look at the kind of annuities that will suit you best. For instance do you want a joint annuity that will provide for your spouse when you are not around anymore? Or do you want an escalating annuity that may protect you from inflation?

Annuity comparison, in this sense is all about the trade-off. You will essentially be looking at the income amount itself, and comparing it with other benefits and features that the annuity type or policy type provides and seeing which one suits you best.

Thus, comparing annuities can at times be tricky. However if you’re clear about what you have and what you need, with the help of a good website and an adviser, you will have secured your retirement with the perfect annuity.

Annuity Rates 2011 – MGM Advantage Annuity Index, reveals that in the last three months to end of March 2011 the average conventional rate rose by 6.14% while the average enhanced rate increased by 3.99%.

This puts annuity rates 2011 back to the levels of 12 months ago.

Here at annuitysupermarket we asked Jennie Gray, IFA to comment on the latest increase to annuity rates 2011. Jennie said, “This is really good news for retirees, we had seen a decline in rates last year and so it is really good to see an increase and especially one that puts rates back to where they were 12 months ago”.

This month sees the new rules for retirees change and the introduction of the new Capped and Flexible Drawdown products, with retirees no longer forced to annuitise at age 75.

Jennie, also added, “The new retirement rules mean that there is no longer a requirement to take an annuity at age 75, this should see many potential retirees leave their funds in accumulation products and take advantage of the death benefits this provides. It would be wise for those unsure about the new annuity rates 2011 rules and how they may be affected to seek the help of an independent financial adviser”.

Annuity rates are going to change in the near future as a landmark decision was made by the ECJ regarding annuity rates on 1st march 2011. This rule made it illegal for insurance companies to determine annuity rates on the grounds of gender and therefore requires men and women to have the same annuity rates. Men have for a long time been benefiting from higher annuity rates because of their shorter life expectancy compared to women and this ruling is set to change things for the better for women. Bringing the rates of men down to the same level as women will benefit the insurance companies only for some time, as this is not likely to go down well into the public domain.

This is not the only rule that has been made about annuity rates in the recent past, there was a ruling made some time back that abolished the rule that annuities were only to be bought past the age of 75. This means that retires who are below the age of 75 can now buy annuities. These two changes in the annuities landscape will pressure companies to bring down their annuity rates in the short term but they are bound to rise in the future. While the increase in these rates will be only slight after a long period of time, it is an increase nonetheless. There is nothing in the present to suggest that the annuity rates will ever get to the levels they were in the 90’s but these increases might be the sign of a better future.

Dominic Grinstead, managing director for MetLife struck a deal with Alico helping it achieve its goal to offer customers a fixed term annuity. Alico agreed to the proposed terms and conditions after six months of negotiations. It is hoped that MetLife will encourage people to use their services.

Mr Grinstead believes that a great opportunity has been created as he said: “We see a massive opportunity in the fixed term annuity market.”

People no longer believe that they need to apply for a one off annuity policy at 60 or 65. As humans live longer they can delay applying for annuities until they are in the seventies and eighties.

Living Time was linked with MetLife when it completed its take over deal. Before the link Living Time struggled as it cut staff to help its bottom line. Former Living Time director Dave Harris left the company believing that his position was redundant.

Innovation is essential to success and Grinstead suggests that the deal with Alico and Living Time was necessary to achieve change and improvement. Negotiators agreed that both parties can combine their strengths to create fixed term annuities. New ideas will only help to improve the services and efficiency of MetLife.

Advocates claim that fixed term annuities are better than other options as they provide certainty over a five, ten, fifteen and twenty year period for individuals and families. Fixed term annuities give customers the safety and stability they need to have a great life. MetLife can now give guarantee that you will have steady annual growth in your life time.