Annuity Rates UK

Well you are no doubt looking into Annuity Rates or you probably would not be on this website. you have paid into your pension “pot” for all those years now it’s decision time.

You have to convert your pot into an annuity (which is a posh word for income) and it is compulsory by the age of 75.

The need to do this is now a big market for annuities of all sorts of types.

The thing to remember is an annuity is a form of insurance policy that gives you a guaranteed income, fixed or indexed, to provide you with an income for life. You buy that income by effectively selling your pension fund to the insurance company.

Now each and every Insurance company will value your fund according to their own criteria at the time and this can change on a regular basis.

So todays best annuity rate deal may be offered by Insurance company A but tomorrow it maybe company X,Y or Z.

Shopping for Annuity Rates

It is therefore crucial to shop around and compare annuities on offer at any one time. Using a pension’s adviser or Annuity Brokerage can be a big help.

You are allowed up to 25% of your pension maturity value as a tax-free lump sum which is a nice extra bonus.

It is worth knowing that “Impaired life annuities” are available if you have or have had in the past medical conditions that could have an effect on your life expectancy.

Things that have a bearing are being a smoker, alcohol consumption, diabetes, blood pressure issues and the like.

An enhanced annuity due to medical history can give as much as 75% extra if it is really serious.

Just by shopping around a fit and healthy individual can get an extra 40% from what their pension provider will offer so it really is worth your time to research those annuity rates.