Annuities

It takes many years of planning, saving and sacrifice to build up a significant pension – and, after all those years, you want to be sure you are making the most of it.

However, as you near retirement, your pension company will send you a variety of options to choose from.  Many of my clients find the choice a bit daunting, as they do not understand the choices and declarations that need to be signed.

There are alternatives to annuities, such as income drawdown, asset backed or short-term annuities.  It is usual that the pack that you receive will only provide a choice on straightforward annuity purchase, which is not always the best for everyone.

All pension providers must now recommend that you seek independent financial advice when they send you your annuity pack, quoting the ‘open market option‘.  I would comfortably state that whenever we  provide annuity advice, we are usually able to shape the annuity to suit your circumstances and obtain a higher income using the open market option.

The choices you usually get are:

  • Taking a tax free cash lump sum.
  • Purchasing a spouse’s/civil partner’s pension.
  • Inflation proofing the annuity.
  • Building in a guaranteed period.
The choices you usually do not get are:
  • Building in capital/value protection.
  • Basing the annuity on your personal/spouse’s health situation.
  • Taking into account your smoking/lifestyle circumstances.
  • Choosing an asset-backed annuity.
  • Including overlap (where the annuity continues through the guarantee period AND a spouse’s pension is paid)

Our downloadable annuity guide* is designed to provide you with the basic information you need to start thinking about your retirement opportunities. It cannot make any recommendations or decisions for you but, armed with the information it provides, you can start to ask questions and, with our help, make sure your retirement is as well-funded as possible.

Alternatively, if you require independent financial advice on retirement income options, feel free to call on 01554 770022 and we can arrange a no obligation appointment.

*Brochure provided courtesy of http://www.adviser-hub.co.uk

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