Can an annuity be altered at a later date?
One of the questions that many people ask is “Once I have purchased an annuity am I able to change my mind if I find a better offer down the line?” and in general the answer to this question is no. Annuities are designed to be a fixed, long term investment that you will have from the age that you purchase it right through to until your death and therefore they cannot be changed once a decision has been made – this is why it’s so important to take the time and research before you choose which plan to go for.
What if I have purchased a fixed term annuity?
If you have elected to purchase a fixed term annuity then you could be eligible to change certain features of your annuity once the fixed term has been completed. Once you come to the completion of your fixed term then you may choose to reinvest this money into another pension product which in turn could allow you to change your benefits – but it’s important to note that once an annuity has been purchase it cannot be opted out of and therefore you should really look carefully before choosing which one is right for you.
Why is it important to shop around before making an annuity purchase?
Before you settle on an annuity choice it’s important to take into consideration a whole range of factors – focussing on the fact that you will not be able to change your annuity once you have purchased it. Shopping around for an annuity can increase your potential income by up to 40% and once you reach retirement age this is a significant amount of money, and it can make a major contribution to your retirement income.
There are a number of different annuity options on the market depending on your own circumstances and you need to take into consideration your location, age and any health issues that you might have before you decide on which annuity is right for you – you could be eligible for an enhanced annuity if you are suffering from poor health and this could give you a higher income still.