Quick Enquiry
Open Market Option
The first choice that needs to be made is whether the annuity should be purchased from the company that you have your pension funds with, or should you use another company’s annuity by exercising your “open market option”. It is quite feasible that the company that your pension fund is with will not have the best annuity rate. The best rate, and therefore the amount that you will receive for the remainder of your life and possibly your dependant’s life, could be as much as 30% higher than the worst.
Enhanced and Impaired
It is also possible that you may be entitled to an annuity that is higher than the standard rate because of health or lifestyle considerations. These are known as impaired or enhanced annuities. There are over 1,000 medical or lifestyle conditions that could lead to as much as a 30% increase in your income in retirement over the standard rate It has been estimated by a leading provider of enhanced and impaired annuities that 40% of pension annuities could benefit from these higher rates, but currently only 4% do.
The best standard annuity could be a 30% improvement over the worst, and an enhanced or impaired annuity could offer an even more substantial advantage.
In order to get you the best deal we need to know your details. Please download and return the form.
Annuity Advantages
- Guaranteed Income for Life
- No Investment Risk
- Security
- The choices are simple
Disadvantages
- You must decide what income type you require at the outset
- You must decide what additional benefits you are going to include at outset
- You can no longer contribute to the fund in retirement
- All income is subject to tax
- Loss of benefits and capital on death
- No benefits from investment growth as there is none
- Annuity rates fluctuate therefore at retirement date the income one could receive could be effected by a slump in the market
