Annuity comparison service
So you are looking to retire. You have a pension fund and want to secure the best income for your retirement.
You have been told that you can buy an annuity with your existing provider or research the market for an “open market annuity” which is an annuity from another provider more suited to your needs.
So what is an annuity?
An annuity is a guarantee from an insurance company to pay you an income for life. To purchase this annuity, you hand over your pension fund to your chosen provider and specify the terms you require. The insurance company will then specify the level of income they will provide based on the features you have selected. You can also choose to have a tax free lump sum of up to 25% of your pension fund resulting in a smaller pot to purchase the income.
The features you need to consider are what death benefits I would like to include for my spouse, whether my income is level or increase by a set rate (usually inflation) and how frequently you would like the payments.
If you are in poor health you may be able to secure higher rates.
Most pension schemes will allow you to purchase an annuity from age 55 onwards.
So why use our annuity comparison service?
- We are an independent firm which allows us to consider all companies that offer annuities. Banks and other firms may be restricted to a small panel.
- We are authorised by the Financial Conduct Authority – any advice that we give has to be the best advice for our clients. We need to a hold a higher level of qualifications to your typical annuity comparison site.
- We can help you understand your options and explain what may be the most important features for you and your family.
- We have secured enhanced rates with some of the annuity providers, with this being passed on in full to our clients.
- Our costs are covered by a commission from the provider, which is disclosed prior to agreeing the advice. The annuity rates that we can secure are the same as what you will receive by going direct. Therefore, it should make sense to get the same rate but have the support of a specialist team and their advice.
Are there any other options to an annuity?
You do have other choices in addition to buying an annuity. Your retirement income using a pension fund can be secured by a variety of different solutions. There may be something more appropriate than annuity. Please see our “retirement options advice” page or contact our team for further information on annuities or other options available to you.