Getting the best deal with a fixed annuity rate comparison
Making a fixed annuity rate comparison, with the help of an independent financial adviser, is a prudent decision. Making the effort to compare annuity rates can save you thousands of pounds in pension income.
This is particularly true in the current turbulent times for investments, as underperformance by the gilts and bonds which dictate annuity rates have been particularly weak. As a result of this, combined with disastrous returns on stock market investments, pension incomes over the period 200o-2o1o have fallen by more than half.
Furthermore, many annuities providers have re-priced their annuities during 2010, with the result that annuity rates in general are now at their lowest point since records began in 1994. The average income from a level annuity (i.e. an annuity which does not rise in pace with inflation) is down by 6.3% over 2009.
Making the effort to compare fixed annuities and make fixed annuity rate comparisons is therefore essential, in order to pinpoint the best fixed annuities, obtain the best available fixed rate annuity deal and maximise pensions income, in such a hostile market.
Let Principle First provide you with a fixed annuity rate comparison. Contact us online for a pension annuity quote or ring 0800 678 5929 today.
Many people now approaching retirement and thinking of cashing in pensions, are under the mistaken impression that, rather than make a fixed rate annuity comparison, they should take the annuity rates offered to them by their pensions provider.
Many ignore the need to seek financial advice on pensions at this point, and make a fixed annuity rate comparison, because they have had a long-standing relationship of trust with their pension company and believe that is the company most likely to provide the best fixed annuities for them.
This is reinforced by the fact that pension companies send an information pack to those approaching retirement, some 6 months before that date arrives, in which they also enclose information on their own fixed annuity rates and products.
However, there is a legal obligation on pension companies to alert their customers to their right to compare fixed annuity rates, and generally shop around for an annuity. This option to shop around is often not made clear in the literature a customer receives, and pension companies have been criticised for this by the Financial Services Authority (FSA) on more than one occasion in the past.
In particular, independent annuities advice on enhanced annuities and impaired life annuities can increase the retirement income of those in less than perfect health.
The reality is that making fixed rate annuity comparisons is a legal right, and is known as the open market option, or OMO. In order to access all the annuity products on the market when making a fixed annuity rate comparison, it is necessary to work with an independent financial adviser. Only an independent adviser can take a ‘whole of market’ approach that will locate the best annuity rates for you .
Let Principle First help you with a fixed annuity rate comparison, to show you the best annuity rates! Contact us online for a pension annuity quote or ring 0800 678 5929 today.
