We can advise on the best annuity for you
An annuity can provide a regular and secured income that you can enjoy in retirement. Before pension freedoms, buying an annuity was the most popular way of taking income from your pension in retirement unless you had a Defined Benefit Pension. There are several different types of annuities, delivered by a range of insurance companies meaning that when it comes to buying an annuity, it can be a confusing and time-consuming process. Deciding on what annuity to buy to deliver income for the rest of your life is too important to do it yourself.
Pension Annuity vs Pension Drawdown:
Benefits of an Annuity
Set, regular retirement income for a period of time (often income for life) that allows you to plan your finances.
Peace of mind that you have a guaranteed income and your money isn’t at risk.
Not affected by stock market crashes or financial insecurity.
You can protect your annuity income against inflation.
With our advice, we could potentially get you more money for your annuity purchase.
Benefits of Income Drawdown
Flexibility on how much you wish to withdraw.
Funds stay invested and could potentially grow.
The regularity of withdrawals can be set weekly, monthly, quarterly, annually.
You could pass on your remaining funds to family members if you pass away.
Speaking with our advisers, we can outline all of your options for retirement.
Types of Annuities
There are many different types of annuities, so choosing the right one for you is key to a comfortable retirement: –
Fixed-Term Annuity – A fixed-term annuity will provide a regular retirement income for a set period, often 5-10 years.
Enhanced Annuity – An enhanced or also known as an impaired can provide a higher than average level of retirement income to the purchaser. This is usually due to a medical or lifestyle condition.
Level Annuity – This is where the purchaser would receive a fixed amount of retirement income for the duration of the time-frame. This doesn’t change with inflation.
Escalating Annuity – Pays an increasing amount of retirement income, usually in-line with inflation.
Single Life Annuity – Is an Annuity that will only pay the purchaser, payments will cease on the death of the annuity owner.
Joint-Life Annuity – A joint-life annuity provides the owner with an income for life, but then transfers to your nominated beneficiary when you die and pays them a regular income.
Value-Protected Annuity – An annuity where the value is protected, so if the owner passes away, there nominated dependents can receive that value back as a death benefit.
Taking financial advice is a good idea
When it comes to purchasing an annuity, seeking financial advice from a regulated financial adviser could be a good idea. You may have already decided that an annuity is a way forward for you but buying an annuity can be complicated with the number of retirement choices available. Our pension advisers are here to help.
Our Annuity Buying Process
Contact your current providers – We will contact your current pension providers to gather all the relevant information to assess them.
Check your pensions – We will check your pensions performance, fees you’re currently paying and how risky the funds you are in.
Find out your goals – Carry-out a ‘Get to know you call’. This call to see what your goals are for retirement plus any medical conditions you may have as this could increase the amount of annuity income you can get.
Search the whole annuity market – Research the whole annuity market to find you the best annuity rate for your circumstances.
Advise on the best annuity for you – We’re often able to get you a better annuity rate than going with your current pension provider and ensure that the annuity is right for you.
Take professional financial advice today to help with your retirement planning, call 0808 164 2664 or start retirement planning today.