Choosing The Correct Pension Annuity In The Uk

By Author: Abner Maurice
Total Articles: 1
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Young people, as a rule, do not give much thought to what their income will be when they retire. However, a discussion with any person who has reached this age will reveal how very important it is to plan for your future by purchasing the correct pension annuity. This choice is extremely important and should be made with care.

At the time of retirement you will receive information from your employer regarding your pension. This includes details about buying an annuity, which will be suggested. However, the one offered might not be the best available. Choosing the correct annuity will make a difference in the amount of money you receive on a regular basis. For that reason it is important that you not act hastily but, rather, should do some shopping around.

A pension annuity will assure you a lifetime income. However, the amount of this income depends entirely on the annuity chosen. That is why it is so important to make the correct decision when making a selection. The difference between annuities can add up to 30% more income each year for the rest of your life.

It is not difficult to get very good retirement ...
... pension annuity rates if the correct policy is chosen. Since rates vary on retirement pension annuities, it is important that research be done to find the best one possible. In doing this research you need to investigate all possibilities. While one offer might be lower, it might not be the best one available.

There are a number of payment options available with a retirement pension annuity. For example you have a choice of receiving payments monthly, quarterly, six monthly or annually. There is also the choice of being paid in advance or arrears, the option of a surviving spouse or partner receiving the pension, an annuity guarantee or indexation. Other features that might be added are ill health, which could result in an impaired life annuity.

Talking to an intermediary will reveal all of the options available as well as an analysis of your particular needs. Questions will be asked regarding any special requirements that need to be considered. Great care needs to be taken taken, at this point, as it cannot be changed once the pension fund's capital has been spent on an annuity.

Fortunately, if you have doubts about one of the open market options, there is the opportunity to contact an annuity and pension bureau that offers advice from an independent financial adviser. This service is paid for by the annuity provider as part of their allotment costs.

There is a choice, at retirement, that enables you to use a money purchase fund, either personal or company, for an annuity when using the open market option to search for the best pension annuity. The annuity you choose is going to be in effect for the rest of your life. Therefore, taking time to do careful research is well worth the effort.

Over 300,000 people retired in the UK in 2008. Unfortunately, many of these people did not shop around for a good annuity. Having the correct and best pension annuity available can make a difference of thousands of pounds every year.

A good annuity broker can find you the best pension annuity.