Annuity Rates UK
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ANNUITY RATES UK - ANNUITY QUOTES
Annuity Rates UK
If you can answer Yes to the following questions you may qualify for Enhanced Annuities
Do you smoke 10 cigarettes or more each day?
Are you currently taking any medication?
Have you ever been hospitalised for any medical condition?
It is Estimated that up to 40% of annuitants qualify for enhanced Annuity Rates
Examples of some of the conditions that may qualify
- cancer
- heart conditions
- diabetes
- asthma
- obesity
- high blood pressure
- organ transplants
- stroke
- liver disease
- alzheimer's
- chronic lung disease
- kidney disease
- multiple sclerosis
- Parkinson's Disease
- or a disease of the central nervous system.
Annuity Rates UK
Picking the best annuity rate or checking if you qualify for Enhanced Annuities could give your pension a significant lift.
There are significant differences in the performance of the worst and best annuity rates and the advice of an independent financial adviser should be sought to ensure you get the best annuity rate.
Annuity Rates UK - Use the Open Market Option
Many people assume that they have to buy an annuity from the company that has held their pension. This is not the case, as you have the right to shop around for the best annuity rates when you retire – it’s called the Open Market Option (OMO). Worryingly, figures from the Association of British Insurers (ABI) show that 61 per cent of people who bought an annuity in 2007 did not shop around in this way.
Annuity Rates UK Explained
An annuity converts a lump sum (usually a pension fund) into a regular income that will last as long as you live. The income is taxable and the amount that you get each year will depend on the size of your fund, the best annuity rates UK the annuity company offers, your gender, age and health, and the type of annuity that you opt for. You are allowed to take up to a quarter of your pension fund as a tax-free lump sum and most convert all of your remaining pension fund into an annuity before the age of 75.
Which Annuity?
Most people opt for a conventional lifetime annuity, but there are several options to pick from. The best annuity rates can have the following options:
- Level annuity Your income will stay the same each year irrespective of inflation.
- Increasing annuity This can either match inflation for the rest of your life or rise by a specific percentage each year.
- Guaranteed annuity This will continue to pay out for a time to a nominated individual if you die soon after retiring.
- Joint-life annuity A joint life annuity gives your partner some or all of your continuing income if they outlive you.
- Investment-linked annuity If you have a larger pension fund, you may prefer to invest it in the stock market. This means that your annual income could go down as well as up.
Checklist
Follow these tips to get the best annuity rates UK:
- Choose the best option. Shop around for the best annuity rates UK using the open market option and don’t just accept what your pension company offers.
- Get good advice. It is important to talk to an independent financial adviser who specialises in annuities before you make your decision.
- Think about inflation. You can make your annuity ‘inflation-proof’ by having it icrease in line with price rises, although you’ll start off with a lower income than if you’d chosen a level rate.