How to decide on your annuity

Turning your pension fund to income can be a minefield; what type of annuity do I buy? Who is offering the best rate? Do I qualify for an Enhanced Annuity? The exact Annuity rate you qualify will of course depend on your own individual circumstances.

All of these decisions are confusing enough, but are made even harder in the knowledge that once you have purchased an Annuity, it can never be changed.

How we can help you with your annuity

First things first, we should make it clear the quotes provided by our Annuity calculator are for information purposes only.

If you then wish to proceed with the purchase please contact one of our advisers on 0115 933 8433.

We believe advice at retirement is crucial and therefore the service that we provide is fully advised. We provide, clear and transparent advice on your options, to ensure you get the best possible outcome for your situation.

As usual with Investment Sense, our objective is simple; we want to help you find the best pension Annuity rate and make the right decision. And because we give full advice with respect to pensions and annuities, our clients have recourse to the Financial Ombudsman Service as well as the Financial Services Compensation Scheme.

The rates shown are for Lifetime Annuities so does not include for example Investment Linked Annuities or Fixed Term Annuities, and include providers of Enhanced Annuities, however we would recommend you speak to one of our advisers to firm up any quotes and ensure you are getting the best rate possible and indeed to confirm that an Annuity is the right solution for your circumstances.

Should you wish to receive advice from one of our team a fee will become payable. The exact amount charged will depend on your own individual circumstances and would be fully agreed and documents before any work is carried out.

Get additional Annuity Quotes

Please be aware that some providers do not make their rates available to our Annuity Calculator.

Should you wish to receive additional quotes please contact us and we can request these from the providers who do not offer their quotes on the Annuity Comparison Calculator, this will ensure that you get the very best possible rate available.

More information on Annuities

With a pension Annuity you receive the security of a fixed income for your life. This type of exchange would happen after you retire and involves exchanging the sum saved in your pension fund for an annual income in the form of an Annuity; this income is then taxed subject to your own individual circumstances. The rate at which it is taxed could change in the future.

If you have a Personal Pension your provider will usually offer you an Annuity when you are coming close to retirement. You do not have to take the Annuity offered by your current pension provider and can shop around for a better rate using the Open Market Option. However, some existing Personal Pensions have valuable Guaranteed Annuity Rates (GARs) which can often be higher than those currently available. We would recommend that you check with your existing pension provider whether your plan has this valuable benefit.

If you have more than one pension it may be beneficial to combine these at retirement and purchase a single Annuity, assuming of course your plans do not benefit from a Guaranteed Annuity Rate.

Those people with medical problems or lifestyle issues, such as smoking or drinking more than recommended levels, may qualify for an Enhanced Annuity, which will increase the level of income available. Any application for an Enhanced Annuity will require full medical information to be provided and the Annuity provider may require further information from your doctor and in certain cases a medical examination to be performed.