Getting the best Annuity for You
Finding the right annuity is a complicated process. Before you start shopping around it is important to think about what type of annuity would suit you best. You should consider;
- Have you considered a Deferred Pension? Just because you are nearing the state pension retirement age doesn’t mean you have to buy an annuity. Current rules allow you to defer buying an annuity up to the age of 75.
- Are you after a Pension lump sum payment on retirement? Current rules allow you to take up to 25% of your pension pot as a tax free cash payment. However remember that by taking tax free cash your pension will fall as you have reduced the funds available for buying an annuity.
- Do you want your pension to outlive you? If not then a single annuity may be the right choice. However if you have any financial dependents you may want to consider a joint annuity.
- Do you want your pension to increase each year? The most common pension, a level annuity, pays out the same each year. However Increasing Annuities, also known as escalating annuities and RPI linked annuities, increase each year.
Your pension company may want you to purchase its own annuity, but the law says you don't have to. The 'open market option' allows you to shop around and choose the annuity that best suits your needs. There can be a significant difference between the highest and lowest annuity rates and shopping around can boost your income by hundreds of pounds a year.
At AnnuityRatesUK.co.uk it is our priority to offer an independent, customer driven, professional advice service that acknowledges your specific needs. For the latest annuity rates and a personalised assessment of your pension/ annuity please speak to the independent annuity advice team for a no obligation consultation.
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