5 Things You Should Know About Annuities
Annuities provide the life income you need in retirement and are purchased with your pension. It is important to get the right annuity for you with the highest rates because this means you will receive a higher retirement income for the rest of your life. Five things you should know are: 1. You have the right to shop around. This is the number one big issue with annuities, which many people do not realise. You do not have to accept the quote from your current pension provider; you can shop around and compare annuity rates. You can choose any other quote from any other provider on the open market. This is a big, important step when it comes to buying an annuity. If you don’t shop around, you could potentially lose out on thousands of pounds of income! 2. You can use an annuity adviser or the help of the internet. You are not alone in your search for the perfect annuity; you can use annuity advisors to help you with your decisions. Annuity advisors will know the open market and know what deals are good for your specific circumstances. The tools on the internet, such as annuity rate calculators, are also very helpful when it comes to doing some research on your annuity. 3. You might qualify for enhanced rates. Enhanced rates are rates which are more attractive and ultimately get you more income because the pension company do not expect to pay out for you for as long as the average person. Therefore many things can make you eligible for an enhanced rate including having a medical condition which affects your life expectancy, living in a poorer area of the country, retiring later, etc. Even having a condition such as diabetes can mean you are eligible for enhanced rates. 4. There are many different annuities. As well as enhanced rates, there are many different types of annuity. This includes fixed rate, 5 year annuities, variable rate, and joint annuities. You should do your research and figure out which is best for you. This gives you maximum chances to gain the most out of your annuity. 5. You can increase your pension pot. Because you buy an annuity with a pension pot, the pot of money you have been contributing towards most of your working life, many people feel that the amount of money you have to purchase the annuity is fixed. However, you are entitled to add to the pot using a purchased life annuity, with savings or profits from a house sale. Some people choose to sell equity.
Article courtesy of http://annuitiesadvice.co.uk