Annuities – Best Annuity Rates

Picking the best annuity rates could give your pension income in retirement a significant lift. There are significant differencies in the worst and best annuities. An annuity calculator can get you the best annuity quotes from the range of annuities on the open market.

Use our annuity calculator to see how much you might get and find the best annuity rates.

48% of people could get a higher income by shopping around

FCA Market Study | December 2014

Do you qualify for Enhanced Annuity Rates?

If you can answer Yes to the following questions you may qualify for enhanced annuity rates.

• Do you smoke 10 cigarettes or more each day and have done continuosly for 10 years or more?
• Are you currently taking any medication?
• Have you ever been hospitalised for any medical condition?

Click here for Enhanced Annuities information

Enhanced annuities, offered by certain specialist providers, provide an income boost to those with mild health problems, to smokers and others with health or health related conditions. They could pay an income which is up to 40% higher than a standard annuity. Even higher enhanced annuity rates can be gained for those with more serious health problems. This can sometimes pay an income of over 60%* higher (*Just Retirement and the Exchange, 22/07/2009) than that paid by a standard annuity.

Annuity Calculator

Using an annuity calculator will help you easily find the best annuities. The annuities calculator is very simple to use and will allow you to change the options to find the most favorable annuity quotes.

Use your right to the Open Market Option

Let us shop around to find the best annuity rates from the open market option

Many people assume that they have to buy their annuities from the company that has held their pension. This is not the case, as you have the right to shop around for the best annuity rates when you retire – it’s called the Open Market Option (OMO. Worryingly, figures from the Association of British Insurers (ABI) show that 61 per cent of people who bought annuities in 2007 did not shop around in this way. Considering that you can use an annuity calculator to help you find the best annuity rates is a surprise.

Pension Annuity and Retirement Annuity

Most people think that their pension annuity starts paying out automatically when they retire, but that is not how it works. It might sound confusing, but the retirement annuity that is paid from the pension fund that you have built up over the years is just a pot of money. The government says you must use your pot of money to but a pension annuity which will provide you with an income in retirement. This retirement annuity can be structured to suit your own particular circumstances and you could use an annuity calculator to help some of the options you can choose are listed below.

Annuities Explained

An annuity converts a lump sum (usually a retirement fund) into a regular income that will last as long as you live. The income is taxable and the amount that you get each year will depend on the size of your fund, the best annuity rates the annuity company offers, your gender, age and health, and the type of annuity that you opt for, use an annuities calculator to get an idea of how much you can borrow. You are allowed to take up to a quarter of your pension fund as a tax-free lump sum.

Which Annuity?

Most people opt for a conventional lifetime annuity, but there are several options to pick from. The best annuity rates can have the following options:

• Level annuity – Your income will stay the same each year irrespective of inflation.
• Increasing annuity – This can either match inflation for the rest of your life or rise by a specific percentage each year.
• Guaranteed annuity – This will continue to pay out for a time to a nominated individual if you die soon after retiring.
• Joint-life annuity – A joint life annuity gives your partner some or all of your continuing income if they outlive you.
• Investment-linked annuity – If you have a larger pension fund, you may prefer to invest it in the stock market. This means that your annual income could go down as well as up.

Checklist
Follow these tips to get the best pension annuity rates:

1. Choose the best option. Shop around for the best annuity rates using the open market option and don’t just accept the first quote you are offered.
2. Get good advice. It is important to talk to an independent financial adviser who specialises in pension annuities before you make your decision.
3. Think about inflation. You can make your annuity ‘inflation-proof’ by having it increase in line with price rises, although you’ll start off with a lower income than if you’d chosen a level rate.

Purchase Life Annuity and Purchased Life Annuities

These purchase life annuity are bought from your own funds or investments they are not bought using money from pension funds. There are significant tax advantages that make these purchased life annuities attractive to those that need a regular income. You can use a purchased life annuity calculator to find the best purchase life annuities.

To get the best annuity rates using your open market option complete our online form opposite and we will send your annuity quotes

ANNUITIES PROVIDERS WE USE

All our annuity quotes are sourced from the whole market, which means we include all the pension annuity providers that will quote for the options you require. Some of the providers are Prudential, Aviva, Legal and General, Standard Life, AXA, Aegeon and Canada Life. For enhanced annuities some of the providers are Just Retirement, Partnership and MGM Advantage.