Annuities

updated: November 20, 2011

Far too many people simply take the annuity offered to them when they retire.  However, people have the right to arrange their annuity with any other pensions office if they can get a better deal.

We estimate that two thirds of people who have taken the trouble to build up a private pension fund throw away part of the guaranteed income that it can produce for the rest of their lives when they retire.

In fact, even of those who do make use of the ‘open market option’, many do not realise that they could qualify for an ‘enhanced’ annuity because of their health or lifestyle.

When you reach the retirement age specified under your personal pension contract, your pensions provider will write to you offering various ‘annuity’ options.

At that stage you should show that information to an independent financial adviser (IFA) so that they can investigate whether a higher, or more appropriate, annuity can be arranged for you, and in the case of a large pension fund, whether an annuity should be used at all.

To obtain further information please click here for our pdf Guide to Annuities.