Getting the best annuity for youShopping around for the best annuity for you, or to use the term used within the insurance industry the "Open Market Option" is a must for anyone with considering buying an annuity. If you have a a personal pension, retirement annuity contract, or any other type of money purchase scheme, then it is always worth shopping around for the best annuity rate for your circumstances rather than just accepting what your pension company offer. Many people do not shop around either through lack of knowledge or apathy. But it can mean a massive difference in the level of income. If you smoke or have health problems this difference can be even greater since you could qualify for a smoker annuity or an impaired life or enhanced annuity.
You do however need to make sure your
existing contract does not offer some level of guaranteed
benefits before taking your annuity with another provider.
Some old contracts provided guaranteed annuity rates, which
at the time would probably have been far below the then
current levels available elsewhere. However now these rates
can seem very attractive, and can be in excess of £1,000 per
£10,000 of pension fund, when current market rates are much
lower.
These guaranteed benefits can
have conditions attached, such as only being available at a
certain age, perhaps age 65, or the annuity may only be
available on a specific basis, perhaps not including any
options such as a spouse's pension or a guarantee. So it is
important to ensure that there are no guaranteed benefits
which would be lost by taking your pension with another
provider.
Stock markets can also move very
rapidly, and you need to consider this when you're planning
on taking an your annuity. The annuity process and the
transfer of funds from one company to another can take
weeks, and if the funds you're currently invested in fall in
value then your annuity could be smaller. This can be
avoided with many existing plans by switching to a safe
fund, and this can be done within a matter of days.
Our annuity service
As independent financial
advisers we can search the entire annuity market on your
behalf, and discuss all the options and answer any questions
or queries you have, we can also check with your existing provider
that you're not missing out on any guaranteed benefits. Contact us
online or call us on now 0800 011 2713 without obligation.
Don't take any
chances with your annuity, you only have one chance to get it
right,
talk
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Contact us now online or call 0800 011 2713 , without obligation.
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