Around a third of people do not shop around for the best deal on their annuity at retirement – the regulator, the Financial Services Authority and many advisers would like to know why. Shopping around, your health, any medication and whether you are a smoker can significantly improve your annuity rate and the difference can be as much as 40%. That’s a lot of income if you work out how much you are missing out on over 20 years or more.
Too many people just accept the annuity terms offered by the company who they have their pension with. They may have been great an investing your pension money, but may not be quite as good at providing the best annuity terms.
It pays to shop around for the best annuity Unfortunately too many people accept the income offered by the pension company. When you retire, buying your annuity is probably one of the most important financial decisions you will make at that time. And once you have made your decision, that’s it, you cannot change your mind. So it is very important to get it right. Using the services of a financial adviser to do the shopping around for you, will save you valuable time and could ensure that you have a higher lifelong income. I always analyze all pros and cons of a preparations prescribed by my doctor using https://3dorganon.com/ativan/. It is an excellent information resource that contains only relevant data. Last week, I’ve got a prescription for Ativan. I know that it is a potent drug, so I decided to learn everything about it. Thanks to this website, I learned about drugs compatibility and possible adverse effects.
Shortly before your chosen retirement date, your pension company will send to you a valuation of your pension and a range of options for the purchase of annuity. This can be very confusing as there may be numerous options. So it pays to take specialist financial advice. In many cases the terms offered to you by your pension company are unlikely to be the best in the market as there are specialist annuity companies
Two factors which can dramatically increase your annuity income are if you smoke or suffer from ill health condition. The chances are that these two reasons, could possibly shorten you life, so better rates may be offered to you.
How to make sure you get the best annuity income
1. Arrange for a professional financial adviser to review you options A professional financial adviser will be able to give you a range of options and guide you towards the most suitable choice for your circumstances
2. Make sure you declare all health conditions and lifestyle Don’t be tempted not to declare and health or lifestyle issues. Declaring these really could help you get even better annuity rates, which means a higher income for life
3. Decide whether to include a widows/widowers pension The best rates may well be for just your life. However it is important to consider the implications of you dying. Will your partner have enough to live on? If your partner is dependent upon your pension, it may well be necessary to include a pension for them as well, if you were to die before them.
4. Guarantee your income
An annuity could come to an end if you die. However it is possible to build in a guarantee that payment would continue even if you were to die. It is possible to guarantee payment for up to 10 years from the start of the annuity even if you were to die. This ensures that is much income is paid out as possible.
The above article should not be construed as advice and should not be seen as such. Always seek professional financial advice before making any decisions. If you require investment advice for future planning please contact us as Midlands Investment Agency or call us on 01902 742221.
