Annuity Rates 2012
As the new year dawns it’s often time for people to start considering their retirement options and for people who may be considering retirement this year to look at where they might put their pension fund, to get the maximum return. Although you have time to decide on what annuity you want to take out, it’s important to shop around and look at your options to consider what type of annuity income might give you the best level of return.
What is an Annuity?
An annuity is a form of pension payment. An annuity is a type of income which provides you with a stable income supply source for the remainder of your life. In general, this amount is determined by your age, life expectancy, current health and any lifestyle habits which you lead.
Annuities are calculated on the principles of how long they will have to be paid, so it dictates that if you are in relatively good health, relatively young and lead a healthy lifestyle you will most likely receive a lower income than someone who is older and in poorer health, on the principle that you will be receiving that income for a longer period of time.
Am I able to shop around for an annuity?
In 1975 the Open Market Option was introduced which dictates that annuitants do not have to stay with their pension provider when it comes to taking out an annuity. In general this means that anyone who is looking to take out an annuity can choose from a wide range of providers, to find a plan which suits their individual needs and gives them the highest annuity income as a result.
Could I look at an Enhanced Annuity?
If you currently suffer from a long-term health condition or you have very poor lifestyle habits then you could consider applying for an enhanced annuity. This style of annuity benefits people who may have increasingly shortened life expectancies and as a result could be eligible for a higher annuity income as it could be paid over a significantly shorter period of time.