Annuity Options
An annuity is a regular income, paid to you in your retirement and paid to you for as long as you live.
It would normally be paid monthly, but you can select annual, quarterly or six-monthly payments.
There are many permutations in which you may take your annuity. Which annuity option to choose is a very important decision and can make a very substantial difference to your retirement income.
Open Market Option:You do not have to take the annuity offered by your current pension provider. You have a right, called the open market option, to 'shop around' to try to secure a higher annuity income. Before buying an annuity elsewhere, we will check with you existing pension provider to see if there are any 'guaranteed annuity rates' that you would lose if your transferred your fund elsewhere. |
There are three main types of annuity:
Annuities also have the following features to consider:
Since the onset of the credit crunch, you may also want to know is your annuity safe?
