Shopping around will on average increase your annuity income by 21%!*
If you are approaching retirement age, or wish to consider your options come retirement, then the term `annuity` may be familiar to you. An annuity is essentially an income provided for life, from an insurance company, in exchange for your pension fund, after the payment of a Tax Free Cash lump sum.
Your current pension provider will write to you and offer their annuity rates, which will most likely be in the form of a level, guaranteed income for life, normally with the option to build in a continuing income for your spouse upon death.
It is highly unlikely that the annuity offered by your existing pension provider will provide the best income, especially if you smoke or suffer from a medical condition.
As Independent Financial Advisers, Bankfield can search the market and recommend the most suitable and competitive annuity for you. We even have access to specialist annuity providers not available to the general public.
Call us now on 0116 253 5600 to speak to qualified adviser in confidence and with no obligation, or complete the enquiry form.
There are a lot of options you can build into the annuity, all of which will have an impact on your income, such as: guarantee periods; death benefits; inflation proofing; and investment content (With Profits or Unit-Linked Annuities).
When it comes to taking an income in retirement, there are many options available and only professional advice is likely to deliver the solution that best meets your needs and circumstances.
It is also worth exploring the alternatives to annuities, such as Income Drawdown.
*Source – Survey performed by Key Retirement Solutions, as quoted in ThisIsMoney.co.uk June 2012: http://www.thisismoney.co.uk/money/pensions/article-2164487/Pensioners-miss-124-million-shopping-best-annuities.html