Fixed Rate And Fixed Term Annuities

 

 

What Are Fixed Annuity Rates & Fixed Term Annuities? 

 

You can choose to have your annuity on a fixed or variable basis. With a fixed rate annuity, the rate of interest and therefore your income is fixed. This gives you piece of mind and security that your income will remain constant. With a variable annuity, the rate and therefore the income you receive is dependent on the underlying investment performance which means that your income will fluctuate making it higher risk, although you will benefit from any investment gains.

 

 

So Does A Fixed Rate Annuity Pay The Same Income For The Whole Term?

It is important to note that the income from fixed rate annuities can still increase each year. This is because you can have your annuity on an escalating basis where it will increase by a set amount each year such as 3% or 5% for example. You might also be able to link it to the RPI (Retail Price Index). The reason why people do this is to try to counteract the effects of inflation which will devalue the income over time if it was to pay the same amount for the full term of the annuity.

 

One downside to the escalating option is that the initial income you receive will be lower than the income from a level annuity. You should discuss both options with an adviser to help you decide which option will be right for you.

 

Call Us On 08000 936399 Or Use The Quick Quote Form On The Right To Source The Best Fixed Annuity Rates

 

 

How To Get The Best Fixed Annuity Rates

 

It is estimated that as many as 40% of people taking out annuities could qualify for enhanced annuity rates. These are basically higher rates that will be paid if the annuity provider thinks you may statistically have a shorter life expectancy that the "average" person of your age, even though you may live to be a lot older than the so called "norm".

 

Some factors that might make you eligible for these higher fixed annuity rates are obesity, asthma, diabetes, high blood pressure, cancer, heart disease, whether you smoke and a whole host of other influences.

 

You need to use the open market option (your right to shop around) to compare the market and source the best rates. You should always speak to an adviser as they will know the market and the providers meaning they are in a much better position to source you the best fixed annuity rates as oppose to simply comparing the internet and speaking to the providers yourself.

 

Using an adviser will also save a lot of time as they will do all the leg work as well as handling all the complex and lengthy paperwork.

 

Call Us On 08000 936399 Or Use The Quick Quote Form On The Right To Source The Best Fixed Annuity Rates