Use your Options when buying an annuity

When you retire you want the maximum income you can get – who doesn’t? But if you are near retirement you might think that all your options have passed you by. You might think you have no choice when it comes to buying an annuity.

This is when you find whether you were wise in your financial planning for retirement, for which you have probably relied on a financial adviser.

An annuity is what you get when you convert your pension savings into an income. An annuity is an annual, monthly or quarterly payment, which you get from a life insurance company.

The fact is that you need to exercise your retirement income options when it comes to getting an annuity, and there are several alternatives. You need to make sure these are spelled out to you by either your independent financial advisor.

You will find it is not difficult to get a good annuity. This is because, following changes in the law in the UK you are not obliged to get your annuity from the life company with which you have been saving for a pension. Really, they should tell you that you may buy an annuity where you like. Some companies do not sell annuities.

What is the best way to find the best annuity for you? These annuity payments are set according your situation, such as whether you are married, etc. Also, you can choose to take a level payment that remains the same however long you live, or one that increases with age. In fact, the annuities that rise with age are usually good only when inflation is high.

The way to find the best one is either by searching the internet But you will do better if you consult a broker that specialises in finding the best annuity for clients. You will pay them quite a small fee for their services.

The broker will search for the annuity that suits you best, and then should give you a short list of suitable firms. It is up to you to choose.

This article is not offering financial advice. Seek the advice of an independent financial advisor.

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