Annuities

Annuities

An annuity is a guaranteed, regular, income which you purchase from an insurance company using your pension fund when you choose to retire. Depending on the annuity type you choose and the insurance company you use, you then either receive secure income for at least the rest of your life (a lifetime annuity) or a fixed number of years (a temporary annuity).

Buying an annuity is very often a once-only decision. Get it wrong and you may be stuck with that decision for the rest of your life. It is therefore, vital that expert, specialist advice be sought in what may at first appear to be a relatively simple area, but is in fact, a very complex one.

How It Works

In a nutshell, when you retire, up to 25% of your total pension fund can normally be taken as a Tax-Free lump sum immediately. The remainder can then be converted into an annuity which will pay you a taxable income, any time from age 55.

Your Options

Enhanced, Impaired Life, Lifetime, Temporary, Flexible Drawdown and Third Way annuity products are just some of the choices that face anyone who is looking to put their pension into payment.

Consideration then needs to be given to matters such as death benefits, spouse’s pension, increases in payment options, guarantee periods and payment terms, to name but a few.

Decisions Made Now May Shape Your Finances, and Those of Your Spouse or Partner, for the Rest of Your Lives.

Whether you are thinking of taking a Tax-Free cash sum and drawing a regular income via an annuity, taking the whole pension as income or even leaving some of your funds invested until later on in life, obtaining expert financial advice from a pension specialist can make all the difference.

Remember that provided you are aged 55 or over, you may continue working whilst drawing pension benefits – you do not have to actually “retire”. Taking pension benefits early may of course reduce your income later.

Annuities – How Do You Know Which Annuity Is Suitable for You?

The company with whom you have been saving may offer you an annuity direct, but, as with anything these days, it pays to shop around.

The annuity market is a competitive one; you have an automatic right to an Open Market Option that enables an annuity to be purchased elsewhere. This may add thousands to your total income over a lifetime.

At Independent Pension Specialists Ltd (IPSL), our annuity advice service will take care of the whole process for you including:

  • Advising on the appropriate type and structure of the annuity for you.
  • Obtaining comparative annuity quotations.
  • Obtaining and completing all necessary forms and discharge warranties.
  • Dealing with money laundering and proof of age requirements, right through to the release of any cash payments and the establishment of your regular income payments.

Please be aware tax rules are subject to change and any annuity benefits will depend on your individual circumstances.

People who have a medical condition, are in poor health, smoke or are overweight may be able to get a significantly higher income through taking an enhanced annuity.

Retirement Planning – Other Options

Annuities are not appropriate for everyone. There are many other retirement products and options available. It is important to establish the one that is most suitable for you. At Independent Pension Specialists Ltd, after discussing your objectives and circumstances, we will recommend the most appropriate solution to meet with your specific needs and objectives.

If you would like to discuss your options in more detail and draw on the specialist, expert advice we provide here at Independent Pension Specialists Ltd, simply call us on 01622 238000 or complete the “Contact Us” form.

Annuities – How Do You Know Which Annuity Is Right for You?

The company with whom you have been saving may offer you an annuity direct, but, like anything these days, it pays to shop around. The annuity market is a competitive one; you have an automatic right to an Open Market Option that enables an annuity to be purchased elsewhere. This may add thousands to your total income over a lifetime.

Our annuity advice service will take care of the whole process for you including advising on the appropriate type and structure of the annuity for you, obtaining comparative quotations, obtaining and completing all necessary forms and discharge warranties, dealing with money laundering and proof of age requirements, right through to the release of any cash payments and the establishment of your regular income payments.

Retirement Planning – Other Options

Annuities are not right for everyone. There are many other retirement products and options available. It is important to establish the one that is most suitable for you. After discussing your objectives and circumstances we will recommend the best solution to meet with your specific needs and objectives.

For more information watch the video below and then to apply for a free brochure and to see if, and how, we can help you please call us on 01622 238000 for further assistance.

What we do

Getting the right financial advice at the right time can literally change people’s lives. This is what our business is about.

Who we work with

We specialise in working with people who are saving towards their retirement, are approaching retirement, or have recently retired.

IPSL Services

In some circumstances, more than one service or a combination of services may be appropriate.

News

We are constantly monitoring the market to ensure we are up to date with all relevant trends. See what's new here.

The IPSL Client Journey

You are at the centre of our process. We provide a face to face or remote service, depending on your needs and location. As independent financial advisers authorised and regulated by the Financial Conduct Authority, we provide specialist advice that will always have your best interests at heart. We only use UK based solutions.

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