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Pension Annuity Explained

So the time has come to consider retirement and you are looking at your options - with so many important decisions coming up and an ever-changing economic climate it can be hard to know the best way to invest your money. In these circumstances many people choose to go with a stable, secure form of income which they know they can depend on.

A pension annuity essentially works by exchanging the pension fund which you have built up throughout your working life into a guaranteed income for the rest of your life. Your pension fund will essentially become a regular payment which you will receive in a similar way that you would receive a traditional salary.

Why is my Annuity choice important?

Once you select an annuity it is then a lifetime agreement and you must stay with that annuity for the remainder of your life - so it's crucial that you choose the right annuity. Research shows that in many cases a person can miss out on up to 40% of their retirement income simply by not being aware of how much their pension fund can potentially earn them and this means taking into account your personal situation, your health and any other circumstances which could have a direct impact on your income.

Working with an Annuity Specialist can help you to identify areas where you could be eligible for a higher income - and can help to point out areas which you might not have even considered. In turn, this can reward you with a higher annuity income and a more stable and relaxed retirement plan.

What are the benefits?

Locking your money away into an annuity might not be an easy choice, but there are many benefits that this type of service can give you and these include:

  • Stable income - a pension annuity provides you with a guaranteed income for the rest of your life. This means that once you have made your initial investment you will continue to receive an income for every year that you remain alive, regardless of how long this is or how much your initial investment was
  • Your income is not investment dependant - unlike other investments and unless you choose an investment dependant annuity, your annuity will not fluctuate with the market. This means that you can rely on an annuity as a form of income regardless of the current economic conditions
  • There are many different types of pension income to choose from - guarantee periods, capped drawdown, flexible drawdown, asset-backed annuities and fixed term annuities to name but a few. We can provide expert help in assessing these and selecting the right option for you is essential.
  • You can choose between a range of annuities - annuity providers will offer a host of different annuity options to you depending on your individual circumstances. This means that if you are suffering from ill health or have poor lifestyle habits you could select an annuity which gives you a higher income
  • Enhanced annuities - Many clients qualified for enhanced terms for their annuity as a result of health or lifestyle issues. Using an Annuity Specialist who understands and advises on these issues is essential.

How can I get started?

If you have been considering the purchase of an annuity but aren't really sure where to start then speaking to an expert can help to put you on the right track. At The Annuity Specialist we have a proven track record and years of experience to help you look through your annuity options.

We know that it's easy to be overwhelmed by the annuity market - there are just so many options to choose from! But if you do find yourself in this situation then instead of being defeated, be pro-active and take control of your own retirement. To find out more about how we can help, contact The Annuity Specialist on 0151 353 1066.

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