Set out below are the top 5 things you need to know in relation to pension annuities.
- You current pension provider may not be the offering the highest level of pension income for your pension pot – you could therefore be losing out on additional income each month by not shopping around
- Open Market Option – every personal pension comes with the right to shop around for a pension income at retirement this is known as the “Open Market Option” – you do not have to buy a pension income from your current pension provider
- Maximum Tax Free Cash – is available from your pension upon securing an income, this is typically 25% of your accumulated pension pot and this remains the same whether you purchase the pension income from your current provider or whether you utilise the Open Market Option to purchase an higher income with another provider
- Basic lifestyle and health details such as your occupation, the number of alcohol units you consume each week, your height and weight and whether you are a smoker may make you eligible for an Enhanced Annuity Rate
- Enhanced Annuity Rates – they are based specifically on any health or lifestyle conditions you may have, which means you may qualify for higher rates compared to standard annuity providers. Qualifying for an enhanced annuity could typically mean an increase in your retirement income of around 43%* compared to the lowest standard annuity. Whether you could receive more or less than this depends on the specific health or lifestyle condition(s) you have
If you are thinking of retiring in the next 6 to 12 months why not speak to an independent financial advisor for a free no obligation discussion regarding your income options.
- Boost your retirement income – pension annuity advice