HomeWhen a person retires they will usually look to convert their pension fund into a regular income. This is the purpose of annuities. A lifetime annuity will transform the pension fund that you have accumulated over your working life into an income that will be paid until you die. When purchasing an annuity you have a number of options and so finding the best annuity quote for you can be a difficult process.
People reaching retirement age often mistakenly believe that they must purchase their annuity from the same company that holds their pension. However this is not the case and under the Open Market Option people are free to shop around for the best annuity quote available. In the UK there are several companies offering annuities. Annuity rates offered by these companies will tend to vary significantly and so to ensure you are receiving the highest income possible from your pension fund you should always search for the best deal.
There are many different types of annuities. Common types of annuity policies include lifetime, with profit, enhanced life and unit linked. The suitability of these different policies will depend on your own individual circumstances and preferences. Your age, sex, marital status and health will all affect the annuity rates you are offered and so which type of annuity is right for you. For example, an enhanced life annuity is a good choice for people who due to a medical condition have a reduced life expectancy.
When purchasing your annuity it is recommended that you make use of professional advice before you make a decision. Independent annuity advisors can help you choose the right annuity for your circumstances and find you the best annuity quote available. Once you have purchased your annuity you won't be able to reverse your decision and so if you haven't taken the time you compare the annuities on offer then you may miss out.
