“For me, there is nothing more disappointing than seeing clients taking an annuity income from their current pension provider, and not making use of their open market option. Make sure you seek advice, get annuities explained to you in detail, and make sure you get the best annuity income in retirement.”
Gareth Flanagan, MD Principle First
Annuities explained – What are annuities?
You spend your working life paying into a pension, then when you come to retirement, you learn that you need to purchase an annuity. This is the case for many new clients who contact us, not knowing about annuities, and not understanding the process involved.
The majority of clients do not know that an annuity is what you purchase with the value of your pension fund. This annuity will then guarantee an income, for the rest of your life.
Annuities explained – Buying an Annuity
No matter what certain lenders would have us believe, purchasing an annuity is a complex decision. You get only one chance to purchase an annuity. Once your pension has been converted to an annuity, there is no going back. For that reason, it is vital that you not only find the right type of annuity, but also the annuity that will give you the best level of income in retirement.
As independent financial advisers, we compare all annuities on the whole market, offering unbiased advice that ensures the best option for you.
Get independent advice and compare annuity rates
Annuities explained – Your Options
There are many options, when purchasing an annuity. If you have a partner or spouse you may wish to provide them with a smaller income, if you were to die after commencing your retirement. However, including such guarantees will decrease the amount of income an insurance company will offer you.
It is important to get independent advice when finding out about annuities. You must make sure than an independent adviser is used, so that you can compare annuities from all insurance companies. The obvious benefit is that you will be able to choose the highest income. Nearly 80% of pension owners fail to check all insurance companies to see what annuity rate they will offer. The majority go with the insurance company that is holding their pension at retirement.
For further information about annuities contact us on 0800 678 5929 or complete or complete our annuity enquiry.
