low annuity rate

USAGE SUMMARY

The phrase "low annuity rate" is correct and usable in written English.
It can be used when discussing financial products, particularly in the context of retirement planning or investment options where annuities are involved. Example: "Due to the current economic climate, many investors are concerned about the low annuity rate offered by financial institutions."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

1 human-written examples

"Retirees would go from being a millionaire to barely being in the middle class," he says.This apparently low annuity rate reflects increasing life expectancy.

The Economist

Human-verified similar examples from authoritative sources

Similar Expressions

59 human-written examples

Current low annuity rates reflect low bond yields.

The Economist

In fact, their problem (low annuity rates) is the flip side of that of bond investors.

The Economist

Pro: You have the flexibility to do what you want with your money, rather than lock into low annuity rates.

The Guardian - Money

By far the best way of ensuring the certainty and continuity of income in retirement is via an annuity – notwithstanding the current low annuity rates because interest rates have touched 300-year lows (which will surely be short-lived).

The Guardian - Opinion

Miserably low annuity rates could move up if interest rates were raised to defend sterling, but if the currency is plunging, the underlying value of people's pension pots will decline.

The Guardian - Money

But a combination of under-funded pensions, low annuity rates and pensioner debt - along with historically high levels of equity in the housing stock - has meant this is no longer the case, according to a report released today by Defaqto.

The Guardian - Business

Saga director-general, Ros Altmann, said people's confidence in pensions has been knocked by scandals, disappointments for those whose pensions have not turned out as they expected, and low annuity rates which have "left many pensioners receiving much poorer value for their pension savings than ever before".

The Guardian - Money

Saga director-general Ros Altmann said yesterday that people's confidence in pensions has been knocked by scandals, disappointments for people whose pensions have not turned out as they expected and low annuity rates which have "left many pensioners receiving much poorer value for their pension savings than ever before".

Independent

But the surge in demand saw insurers raise their prices – such that men who bought just before 21 December suffered the lowest annuity rates ever and rates have since increased by 10 per cent".

Independent

The lacklustre performance of pension investments since the financial crisis, as well as record-low annuity rates, have also encouraged older workers to delay retirement and stay in the workforce for longer, typically becoming self-employed consultants.

The Economist

Expert writing Tips

Best practice

When discussing retirement planning, clearly define what constitutes a "low annuity rate" in the current market context to provide readers with a benchmark for comparison.

Common error

Avoid simply stating that annuity rates are "low" without providing context or comparison. Specify the period, benchmark, or type of annuity for clarity.

Linguistic Context

The phrase "low annuity rate" functions as a descriptive term in financial contexts. It modifies the noun "annuity rate", indicating that the rate is lower than expected or desired. As Ludwig AI confirms, this phrase is grammatically correct and appropriate for use.

Expression frequency: Common

Frequent in

News & Media

75%

Formal & Business

20%

Science

5%

Less common in

Wiki

0%

Encyclopedias

0%

Social Media

0%

Ludwig's WRAP-UP

In summary, "low annuity rate" is a grammatically sound and frequently used term to describe unfavorable conditions in the annuity market. As Ludwig AI indicates, its purpose is primarily informative, appearing mainly in news and business contexts. Understanding its usage and related phrases, like "reduced annuity rate" or "depressed annuity rate", is crucial for effective financial communication. Remember to provide context when discussing "low annuity rates" and avoid overgeneralizations to ensure clarity for your audience.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

depressed annuity rate

Replaces "low" with "depressed", emphasizing the negative impact on the annuity rate.

reduced annuity rate

Substitutes "low" with "reduced", indicating a decrease in the annuity rate.

poor annuity rate

Replaces "low" with "poor", highlighting the inadequate return from the annuity.

meager annuity rate

Substitutes "low" with "meager", suggesting a very small or insufficient annuity rate.

unfavorable annuity rate

Replaces "low" with "unfavorable", indicating that the annuity rate is not beneficial.

low return on annuity

Changes the structure to focus on the return rather than the rate itself.

low annuity yield

Replaces "rate" with "yield", another term for investment return, emphasizing the low yield of the annuity.

lower than expected annuity rate

Adds the element of surprise or disappointment by suggesting the rate is below expectations.

disappointing annuity rate

Expresses dissatisfaction with the annuity rate, highlighting its inadequacy.

subpar annuity rate

Replaces "low" with "subpar", indicating that the annuity rate is below the standard or average.

FAQs

How does a "low annuity rate" impact retirement income?

A "low annuity rate" directly reduces the amount of regular income a retiree receives from their annuity. This may necessitate finding alternative income sources or adjusting retirement spending habits.

What factors contribute to a "low annuity rate"?

Factors contributing to a "low annuity rate" include low interest rates, increased life expectancy, and market volatility. These factors affect the profitability of annuities for providers.

What are some alternatives to accepting a "low annuity rate"?

Alternatives include delaying annuitization, exploring different types of annuities (like enhanced annuities), or considering alternative retirement income strategies such as "drawdown arrangements".

Is it always bad to have a "low annuity rate"?

While generally undesirable, a "low annuity rate" might be acceptable if the annuity offers other benefits, such as guaranteed lifetime income or inflation protection. The suitability depends on individual circumstances.