Before you take the first annuity rate offered by your existing provider make sure you have considered the following.
- Using the open market option may ensure you a higher income for the rest of your life
- You can usually take up to 25% of your total pension as tax free cash
- Deferring an annuity purchase does not always guarantee you a better rate
- If you have a partner you can select a joint life annuity which will ensure income will continue after you die
- If you have certain health conditions or lifestyle choices such as smoking you could qualify for an enhanced or impaired annuity
- If you have several pensions you could amalgamate them to achieve a higher income
- Buying an annuity might not always be the best option for your needs. There are other options such as Drawdown and Temporary annuities.
With an ever increasing array of ways to turn your pension into an income it is advisable to take specialist advice. Over the last decade annuity rates have crumbled, leading to many new products coming onto the market in an effort to offer an alternative to traditional annuities. Don’t settle for the initial rate your existing provider offers you. Shop around by speaking to an independent retirement specialist. Fill out the quote form at RetireRight and a specialist will be in contact to guide you through the next steps. The quote is free you have no obligation
