Best Annuity Ratesto secure the highest
income
for your money and compare the annuity rates that offer different features such as single, joint life or escalation.
Increase
your annuity income by up to 30%!
If you are retiring now, shop around for the highest open market
annuity or we can do this for you, just use the free
annuity quote
Decision
tree
The Financial Services Authority
(FSA) now require providers of pension arrangements to
inform individuals at their retirement date that they
do not have to accept the providers annuity. Instead they
can exercise an open
market option in order to secure a higher pension
income, sometimes as much as 30% extra from another provider,
on retirement.
The FSA have provided guidelines for individuals buying
an open market option, and the following decision tree
is based on the FSA chart to help you select the best
annuity for your needs. You can also visit the FSA website
from the official
sites links page.
Start
your decision making here
On
your death, is there a wife, husband or partner
that you want to provide a survivors
pension income?
no
yes
You
can consider a single
life annuity that will provide a pension
income to you only.
If you are married a joint
life annuity will pay out a lower pension
income than single life annuities and a reduced
income to the survivor but co-habiting couples must
check the terms first to see if they are eligible.
Inflation
will reduced the spending power of your pension
income. Do you want to protect your income against
this even though it may mean taking a lower income?
no
yes
You can choose a level
annuity that will pay you a fixed pension
income throughout your lifetime.
The income will be higher than an escalating annuity
but inflation will reduce its spending power over
time.
An
annuity giving RPI
escalation would be linked to the retail
price index (RPI) that will keep up with inflation.
You could also choose an annuity with a fixed
rate escalation rising at 3% or 5%.
This will mean accepting less pension income than
a level annuity at the start, but your income will
rise with inflation. At low inflation rates it could
take 20 years to match the income from a level annuity,
however, inflation can quickly reduce the standard
of living enjoyed from a fixed income.
Have
you or your partner suffered from ill health in
the past, or are a smoker, or overweight?
no
yes
If
you have a health problem that could shorten your
life, you should consider an impaired
life annuity.
yes
If
you don't qualify for an impaired health annuity,
you may be able to get an enhanced
annuity. This depends on your occupation
and where in the country you live.
If
you died after taking out an annuity, would you
like the income to continue to be paid to a person
for a period of time?
no
yes
You
can have a guaranteed annuity that, on death, will
pay an income for a guaranteed
period, usually 5 or 10 years. For the remaining
of this period the income is paid to your estate
or a person you have specified.
yes
If
you have a personal pension, do you want to exercise
your right of taking a tax
free lump sum? If you do, the income you
can receive with the balance of the pension fund
will be reduced.
no
yes
Depending
on the type of personal pension, you can get up
to 25% as a tax free lump sum.
Disclaimer:
Information found on this site does not amount to financial advice or
legal advice. Every time you access the website you agree to be bound
by the Terms and Conditions.
If you do not agree to be bound by them, you should not use the sharingpensions.co.uk
website. Before taking any action regarding pensions, pension on divorce
or any other financial or legal matter you should seek professional
advice.
