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Pension Annuities – A Quick Guide
What are Pension Annuities? Bought at retirement age a pension annuity converts a person’s pension fund into a regular income that will be paid for the rest of their life. There are several different types of annuities that are available. In the UK, annuity options on offer include Lifetime Annuities, Enhanced Life Annuities and Unit Linked Annuities. Purchasing an annuity is optional up the age of 75 after which buying a policy becomes a legal requirement. How big are the Annuity Payments? The size of the income paid by the annuity policy will depend on a number of factors and so will vary according a person’s individual circumstances. Factors that affect the size of payments include the type of policy, the person’s age at the time of purchasing the annuity, life expectancy and the size of the person’s pension fund. Another deciding factor is the rates offered by the annuity provider. What is the Open Market Option? The Open Market Option means that there is no requirement for a person to purchase an annuity from their pension provider. Instead they have the right to shop around for the best annuity rates offered by any annuity provider. There is often a sizable difference in the annuity rates offered by the various providers and so not shopping around for the best deal can be damaging to a person’s prosperity in retirement. Once a person has committed to a particular plan they usually won’t be able to reverse their decision. Article Directory: http://www.articledashboard.com Based in Cheshire, Blue River annuity advisors provide independent pension annuities advice to clients throughout the North West. Use our online annuity calculator and find the best annuity rates available in the UK. |
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