News Archive - July 2008
The Open Market Option
01/07/2008When markets are falling it is more important than ever to squeeze the most out of your pension fund.
For most people with a personal pension, accessing your pension means
using the accumulated fund to purchase an annuity. In its simplest form,
an annuity will provide a regular income for the rest of your life. Various
option such as guaranteed periods, annual increases and spouse's pensions
can also be added, but the basic idea is the same.
One feature of the annuity market is that it is very competitive and the
best annuity rates change constantly. This means that it is very unlikely
that your pension provider will be the company with the best annuity rate.
Despite this, many people still buy their annuity from their pension provider.
Annuity specialists Just Retirement estimate that this results in pensioners
missing out on £500m each year in lost pension income.
This is an area where a pension specialist IFA like Mulberry Financial can really help.
We search the market to get the best annuity rates and we can also obtain
enhanced rates for those in poor health. We will explain the different
annuity options and help you to decide which ones are important for you.
You only get one chance to buy your annuity - providing an income to last
you and your spouse the rest of your lives - so why would you do it without
any advice?
If you are approaching retirement, please call us for a free initial discussion.