What are my annuity options if I have more than one personal pension?
If you have arrived at retirement age with a number of pension pots scattered right across the country then you might be looking for an element of financial consolidation, and for this reason you may choose to purchase an annuity which streamlines all of your pension pots in to one regular payment.
Regardless of whether you have one or multiple pension pots you are still eligible to choose from any annuity that you like and the Open Market Option means that your annuity income doesn’t even have to be provided by any of the pension companies that you have previously held one of your pension pots through – you are completely free to decide on your own annuity choices.
Can I combine my pensions?
When considering what to do at retirement, many people choose to combine their pensions into one pension annuity, this means that they have one main source of income rather than having to deal with multiple companies and multiple administration fees accordingly. Combining two or more pensions together is a decision that needs to be taken seriously and before you make any decisions you need to look at any fees and associated costs that may be involved and weigh these up against any potential benefits that you might reap as a reward.
In general, one combined pension can give you greater purchasing power when it comes to investing in an annuity and therefore a greater range of options to choose from, therefore over the long run potentially providing you with a higher return for your investment.
What are some annuity options I might consider?
If you are planning on combining multiple pension pots and purchasing an annuity then there are many considerations that you might need to make before you make the commitment, but some of the factors that you need to take into consideration before you purchase any annuity include:
- Your location and your current health – these are both big contributors to any potential annuity income
- When you take your pension and therefore when is right to apply for an annuity
- What type of annuity you want to purchase – single or joint
- Whether you need a built in death benefit or protection from inflation.