Annuities

Annuities can help enhance and further the income you get from your pension fund when you stop working and retire. Many people may opt for a standard lifetime annuity which usually guarantees a level of income for the rest of their lives.

Whilst this seems a safe and sensible option the downsides of standard lifetime annuities are usually that it will die with you and the pension company keeps the fund. There is also no flexibility with the level of income you receive after the annuity has started.

As independent pension annuity advisers our job is to advise you on the annuity options that most closely matches your situation to make the most of your pension fund and get you the best annuity rates.

At Annuities Advice we make all of our clients aware of the different types of annuities and the available options associated with them, this way an informed decision can be made, after all it is an important decision which will affect you for the rest of your retired life.

Enhancing your Annuity

When a standard lifetime annuity is quoted, your income level is calculated and linked to two factors:

• The normal life expectancy of a person of your age who is in good health.
• The interest rate at the time of the quote.

Once a lifetime annuity has been taken out it cannot be altered. With this in mind, it is also important to understand that the original lifetime annuity quote won’t take into consideration the following factors:

• Your state of health when you take out the annuity.
• The impact of interest rate changes.

An enhanced life annuity can overcome both of these issues. A significantly increased pension income can be achieved with an enhanced life annuity once a simple medical questionnaire has been completed. There are also annuity plans that pay out a lump sum on death before the age of 75.

These plans are also beneficial to those who are worried about the impact of future interest rate changes. Options to buy the annuity on a temporary basis are available where the guarantee of income normally lasts for 5 years and at which point expires. However at this point you will have a guaranteed fund which can be used to buy a new annuity plan and if the interest rates are more favourable at this point in time, your income could be significantly increased.

Contact us today to speak to one of our experienced annuities advisers to find the best annuity rates. Take advantage of our free online annuities calculator, complete an online enquiry form or call us on 08000 936399.