What kind of annuity is right for me?
Finding the right annuity is incredibly important to any person who is considering their retirement income as it will provide an income source for the rest of a person’s life. Choosing an annuity can often be an incredibly difficult and challenging task, especially in a marketplace where there are so many options available and as a result, knowing what you want from your annuity and where you can get it is a good place to start.
It’s important to take into consideration the factors which might be affecting your annuity income, especially if you are shopping around for options, in general this can include your age, life expectancy and current health and how you can use this to gain yourself a better annuity income.
What benefits can be gained from shopping around?
Choosing the right type of annuity can be a challenging task and you need to understand that you have the ability to shop around. Although many people believe that they have to take their annuity from their existing pension provider this is simply not the case and the Open Market Option which was introduced in 1975 provides that an annuitant has the ability to take their annuity from any company regardless of where their pension has previously been kept.
This means that you could drastically improve your annuity income by simply shopping around and looking for a better option. The market is incredibly competitive and as a result you may be able to find an annuity plan which suits your individual needs or situation, whether you are suffering from a long-term illness or other poor lifestyle condition.
What do I need to take into consideration?
There are many things that you may consider when it comes to purchasing an annuity and these include:
- Do you need an individual or joint annuity?
- Do you have an existing lifestyle condition which could make you eligible for an Enhanced Annuity?
- Are you eligible for a higher annuity income due to an illness or shorter life expectancy?
- Do you want to take a risk with your annuity investment or do you want a stable income?
- What level of protection do you want from your annuity income?