Can I switch the provider of my annuity later?

28th July 2012

Purchasing an annuity is perhaps one of the biggest decisions you will make when planning for your retirement and there are many things that you need to take into consideration before you take a leap into making this purchase. The annuity market is big business and as such there are a wide range of companies offering you a whole host of different pension and annuity plans – leaving you in a position to really chop and choose between which plan suits you.

When you do decide on an annuity it’s important that you really consider the implications of your decision – an annuity is a decision for life and you can’t change your annuity provider once you have made this decision, so take the time and research carefully before you look to make an investment of this type.

What do I need to consider before taking out a pension annuity?

The main reason that you will be considering investing in a pension annuity is to provide yourself with a reliable source of income for the remainder of your life and this is a fairly big decision for anyone to make. Before you choose an annuity provider you need to consider your own position and any characteristics that you might have which could entitle you to a higher annuity income, such as being in poor health or having a pre-existing medical condition.

There are a number of different annuity options on the market but if you do suffer from poor health then looking at an enhanced annuity can be a great way to boost your annuity income. In general, if you are in poor health you are deemed to have a lower life expectancy than other annuitants and may therefore be eligible for a higher annuity income.

Should I consider an enhanced annuity or other options?

Considering an enhanced annuity can definitely be of benefit to you if you find yourself in this situation and this is just one of the many benefits that you might be able to choose from if you take the time to shop around and find an annuity plan which is tailored to your needs. Purchasing an annuity is a decision that you will have to live with for the rest of your life – and not one to be rushed.

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