Annuities
A big decision
For the majority of personal pension savers, retirement means purchasing an annuity. This is the process whereby you exchange your pension 'pot' for a guaranteed income for the rest of your life. This is a once-in-a-lifetime decision, and once set up your annuity terms cannot be altered.
There are different options which can be specified when buying an annuity which make a big difference to the level of income you receive. You also have the option of using your pension to buy an annuity with someone other than your pension provider. This is called the Open Market Option and it is still woefully underused.
The annuity market is very competitive, meaning that it is very unlikely that your personal pension provider will be paying the best available rate at the point of retirement.
By getting the highest available rate, you are effectively locking yourself into a higher level of income which will last from now until your death (and potentially even longer if you include a spouse's annuity). Why throw away free money by settling for a lower annuity rate?
We have set up a new annuity comparison website,Annuitychecker to help people who want to maximise their retirement income.
We are fully independent, so we can look at the whole market to find the best rates. (including enhanced rates for certain postcodes, smokers or those with health conditions like diabetes, high blood pressure etc). We will also do all the administration and forms to make it easy for you.
You can look online for comparative annuity rates, but why bother? If you use our service then you can get the same annuity rate as if you went direct, but we will do all the admin and make it easy for you.
