What Is An Annuity?

An annuity is a financial product that converts capital into income. You hand over a lump sum of money in return for a stream of income payable for a defined period of time, or, as is often the case, until your death. There are two basic types of annuity - those that you choose to buy but are not required to buy, known as purchased life annuities; and those that are purchased with funds from a pension scheme, known as scheme annuities or compulsory annuities. Whether you are considering investing a lump sum in a purchased life annuity or whether you are looking to make arrangements for creating income in retirement through annuity purchase, it is vital to shop around and find the best annuity and the best annuity provider for your circumstances. An independent financial adviser (IFA) will be able to assist you in reviewing your financial circumstances and direct you towards your best options.

The Open Market Option Explained

A recent survey showed that 2/3rds of people buy their annuities (pension income) from the same provider with whom they built up their pension. Many people are unaware that they have the right to give their pension pot to whichever annuity provider will pay them the highest income for life. This is known as an open market option. This can make a significant difference to the level of income you receive and therefore your lifestyle in retirement. You can shop around and obtain quotations from all of the leading providers yourself, a time consuming exercise. Alternatively you can ask a specialist to do this on your behalf. Please complete our no obligation form and we will obtain a quotation for you based on the highest rates we can achieve for you. Buying an annuity is one of the most important financial decisions you will ever make as it determines the level of income you will receive from retirement for the rest of your life. It is therefore imperative that you obtain the best level of income from the pension pot you have built up over your working life to ensure you enjoy the highest quality of life in retirement. Whether you have already decided or you require advice on the most appropriate annuity, or indeed if phased retirement or income drawdown would be more beneficial, then please complete the no obligation quotation form and we will advise you of the best rate we have to offer.

Will I Pay a Fee?

We are paid by pension providers for the work we do and do not charge you a fee. Will You Shop Around For Us? In the past, pension annuity advice has been difficult to find, but now by using our dedicated software we are able to make this specialist advice available to everybody. Taking time now to shop around is time well spent, but you need to be aware of all your options, not just the annuity option. This is where we can help you.