You only get one opportunity to get your annuity choice right.
Get help with saveyourselfmoney. With the average UK consumer
living for longer after retirement and plenty of media coverage
about the lack of state pensions available, it has now become more
important than ever for you to consider how you start your annuity
to help you when you are ready to enjoy your retirement.
But first, what is an annuity?
Annuities are financial products that convert capital into income and so if you chose to buy one, you would hand over a lump sum of money plus additional voluntary contributions in return for a run of income that is payable for a certain amount of time or until your death.
Here at saveyourselfmoney, we can put you in contact with an annuity advisor that will have a range of annuities for you to explore and browse through to compare annuity rates. So whether you are deciding whether you can retire or looking for a better rate of return than your current provider is offering, we can point you in the right direction to find a product that meets your circumstances best.
Where to look for annuities
For many, seeking the expertise of an independent financial adviser (IFA) will be the best way to help review finances and select the best option to match a plan for the future.
Remember, going through your current provider does not always lead to the most competitive annuity rates. You should check the open market option. By taking advantage of the open market, consumers can shop around for annuities products that offer as much as 25 per cent more income than the average package.
And for those suffering from a serious illness, impaired annuities are also available on the market to ensure everybody has the chance to have financial support in their retirement years. Impaired annuities are offered at a higher rate, where underwriters believe the individual has a lower life expectancy than average. This can result in considerably higher payments.
What annuities should you go for?
Your current income has a lot of sway over what annuities products
you should be looking at. If you are looking to buy an annuity you
should consider how much money you will need in the years to come,
whether you will be supporting a partner or dependent child or
relative and whether or not you will need to take some of the money
from your annuity before you reach retirement for other things.
Basic annuities offer a standard stream of income that will not change meaning your income could be eroded by inflation. Others decide to purchase an annuity that tracks prices meaning their income is not eroded by inflation in the future.
Furthermore, health and lifestyle choices all play a part in calculating your annuity. For instance, those who are able to prove they suffer from a terminal illness or who smoke may be offered a higher annuity rate than healthier people.
Many firms offer higher annuity rates to smokers and people who have worked in certain industries that are known to impair health.
saveyourselfmoney now!
So here at saveyourselfmoney, we believe that everyone should shop around for their annuity and we offer contact with IFA's who can help you choose the package that is right for you and your future.
Read our no-nonsense guide and fill in the form for more help.
