Can I change my mind once I’ve bought an annuity?

25th May 2012

Purchasing an annuity can be one of the most important decisions that you make during your life, after all you are turning all of your hard-earned pension money into an income which will support you for the rest of your life. Once you have decided on an annuity it’s a decision that cannot be taken back, and once an annuity has been purchased it’s an agreement that you have entered into for the remainder of your life. For this reason it’s crucial that you take your time to choose the right annuity for your needs, and to shop around for the best annuity income that you are eligible for.

What options are available to me?

Choosing an annuity is a very important decision and as such it’s one that you should take a great deal of time over. There are so many different annuity options in the market that it can often be overwhelming, but taking the time to sort through them and looking at which annuities can meet your individual needs is a profitable experience in the long run.

The Open Market Option also allows for flexibility within your annuity choice and means that you don’t have to continue with your existing pension provider, giving you the opportunity to look around and find an annuity plan that suits you, and this may not be with your existing pension provider.

When choosing an annuity you may consider an enhanced annuity, which takes into consideration any health conditions that you have, a joint annuity, which takes into consideration your partner, or an inflation-based annuity which takes into account inflation into the future, but whichever you choose you need to be certain of your decision, as once it is made you can’t take it back.

Is there a cooling off period?

In some situations you may be eligible for a cooling off period of up to two weeks. This means that once you have purchased an annuity you have a period of 14 days to confirm your annuity and potentially opt-out of it, if your annuity provider allows it.

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