Deferred Annuities - your choice to put off your pension income
When you come to look at the various annuities available on the market, your choice will be the annuity that best suits your particular circumstances at that moment. If you do not wish to take an income right away for any reason, then deferred annuities may be the perfect choice for you.
Deferred annuities are annuities that do not make payments immediately, but delay or ‘defer’ them until later. One reason for choosing a deferred annuity might be to allow your pension savings to grow inside the annuity for an additional few years.
Thinking of deferring your pension income with a deferred annuity? Make an annuity enquiry or call 0800 678 5929 now.
In general terms, deferring an annuity may provide you with a higher income than the normal retirement annuity, which begins to pay straight away. This is because, when you eventually do take your pension, as you will be drawing your pension for a shorter time than if you were to take it right away.
Deferred annuities may also be of interest to those who are retiring gradually, by continuing with part-time work which is providing them with an adequate income for the moment.
A deferred annuity may also suit those with savings or investments that will relieve them of the pressure to have an annuity income immediately upon retirement.
By contacting us you can have the various annuities explained, we can help you identify the type that is right for you.
Shop around for your deferred annuity
It is important to be aware that you do not have to accept the deferred annuities on offer from your existing pension provider i.e. the company that has managed and invested your pension savings.
In fact, you have the right to shop around for deferred annuities and consider the full range of options on the market. This is known as your open market option, or OMO, and takes into account the fact that the best deferred annuity for you may well involve buying from another provider.
In order to access all the various deferred annuities on the market, the ‘whole of market’ approach of an independent financial adviser can help you find the very best annuities advice available.
At Principle First we carry out an annuity rates comparison that will identify the best deferred annuity rates on the market.
Do you want to check if a deferred annuity suits your retirement plans? Ask us for an annuity quote or make an annuity enquiry now, or ring on 0800 678 5929.
