How long does it take to set up an annuity?

11th January 2012

Annuity investments are one of the biggest decisions that a person will make during their lifetime and it is not a decision that most people will choose to take lightly. When it comes to setting up an annuity it’s important that you research your decision thoroughly to ensure that you have made the right one as it will have a big impact on your financial situation for many years to come.

When it comes to setting up your annuity in general it can take just under two months, but this time can greatly differ depending on your current pension provider. If it takes your pension provider a long time to transfer the relevant information and pension funds to your new annuity provider then it will take a longer time to set up your annuity and vice versa. The annuity cannot be set up with your new company until your current pension provider has transferred the relevant monies to them and this in turn can take time.

Do I have to involve my current pension provider?

Even if you have chosen to move away from your current pension provider you will still need to obtain your pension sum from them and have it transferred to your new annuity provider. Under the Open Market Option you are free to choose between annuity providers and you don’t have to select specifically your original pension provider, this gives you a greater choice and variety of annuity companies to choose from, which in turn can provide you with a better retirement income.

Shopping around for an annuity is a popular choice for many people who are looking to get a better return on their retirement income and once you have found a suitable company it could take up to eight weeks, or more to transfer the money across from your existing provider.

What timeframe do I have to purchase an annuity?

. Obviously the sooner that you purchase your annuity the sooner it can be set up and the quicker that you can start receive your annuity income. You can purchase an annuity at any age after 55.

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