Why compare annuity rates?

11th January 2012

Purchasing an annuity can be an incredibly important decision in a person’s life and so it is crucial that you take the time to consider all of your options before making a final decision, after all once your take out an annuity it cannot be changed. There are a wide range of annuity providers on the market and they all offer a range of options to you, depending on your circumstances, so it’s worth shopping around to find the best package before you consider investing your money.

With the introduction of the Open Market Option and the increased number of annuity providers, there is no excuse not to take the time to find the right package, after all you could save yourself a considerable amount of money in the long run.

Open Market Option

Introduced in 1975, the Open Market Option is designed to give retirees the ability to choose between a range of annuity providers and therefore promote competition within the market, giving a better deal to annuity purchasers. The Open Market Option means that retirees no longer have to take an annuity plan from their existing pension provider, rather they are able to choose from a range of annuity companies, depending on who offers them the  best deal for their individual situation.

What benefits might I receive?

When it comes to comparing annuity rates there are a number of benefits that you could receive. Depending on your circumstances you could be missing out on hundreds of pounds each year due to your health, lifestyle or personal circumstances. Each company offers a range of packages tailored to each situation and you could find that by shopping around you can find a better package for your personal circumstances, compared to what you are being offered by your existing pension provider.

Why is it important to compare before I buy?

When it comes to purchasing an annuity it is an incredibly important decision, mainly due to the fact that you are not able to change your annuity once it is purchased. Taking the time to shop around and viewing what a range of different annuity companies have to offer you can help you to get a better return on your investment and help to increase the money that you are entitled to.

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