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Annuity Rules Are The Biggest Misconception

An annuity is an important tool in the retirement sector, which allows you to draw your pension fund as regular income during retirement. Investing your hard earned life savings into an annuity is a very important decision indeed, and it is vital to shop around not only for the most suitable annuity type, but also for the most suitable annuity provider for you.

The biggest misconception when it comes to annuities is that one is required to set up an annuity with their pension provider. The truth is that thanks to the open market option, there is absolutely no need to be limited to your pension provider for an annuity. In fact, the Government is trying to encourage people to use the open market option and shop around for the best annuity deal before investing.

Annuity rates can vary very widely between providers. Also, the variety of annuity products available means that different annuities will have different rates even from a single provider. So a company that offers the best rates with one type of annuity may not necessarily do so with a different type of annuity.

The first step towards finding the right annuity, therefore, is to understand your own needs and find out what type of annuity works best for you. For instance, would you need a single life annuity, or a joint annuity? Would you rather have a guaranteed income for life, or invest in a higher risk investment linked annuity? Would you need a fixed annuity with fixed payments for life, or an escalating annuity? These are some of the questions that need to be answered before you can shop around for the best annuity quote.

Your pension provider is bound to offer a quote, and there is no reason why you should not consider this quote, as there is every possibility that it will not only be competitive but may even be better than the open market options. The point is not to limit your options, but to shop around and make an informed choice about this important step in life.

The Financial Services Authority has worked hard to ensure that pensioners have the right to exercise an open market option and shop around for annuity quotes. The FSA continues to encourage people to use this option and has also made it mandatory for your pension provider to remind you of this option while offering a quote. That you must purchase an annuity from your pension provider is a myth, but thankfully, one that is continuing to diminish rapidly.

Which Annuity Is Best?

The main goal of any person who has retired is to usually convert the savings that they have built up towards their retirement into a regular source of cash, so that they may continue having an income. A lifetime annuity is what will usually determine the amount that you are paid, and since you will be paid until you die, it is best that you take the time to find a provider offering the best quote.

There are people who will usually take the first quote that they get although it may not be the best. So, how do you find out which annuity is best and what is the best way in actually obtaining it?

To start with, it is important that people realize that they do not need to purchase their annuity from the same firm that also holds their pension funds. A person can shop around and they may get lucky by getting a better offer from another firm for their annuity.

The Open Market Option offers people a chance shop around and get the best annuity quotes and if you are looking for the best quote, then this is essential in order to obtain the best deal and therefore best income from the pension pot available.

There are a number of annuities that you can choose from, but the most popular are lifetime, unit linked, with profit and enhanced annuities. However, the choice that you make for your annuity will usually be based on your sex, age, health and even marital status.

However, your preference will also contribute to deciding which annuity to choose. It is also important that the rates that you will be paid are determined beforehand so that you may make an even better choice. For instance, people with a serious medical condition can go for the enhanced annuity, since these schemes offer a greater annuity based on the fact people who qualify may not live for as long as a healthy person.

Therefore, there are many annuities that are offered in the market today, and it is up to a person to make the choice on what they want to get. But it is advised that annuity experts are consulted so that a person can be able to make a choice based on informed knowledge. This is important since once you make your choice, you will be stuck with it for the rest of your lifetime.

Calculate your Annuity Quote Online!

Despite having the open market option, even today, many people continue to opt for the first annuity offer that is made to them by their pension provider. Market research shows that just by exploring the market and shopping around, you could be getting up to 46% more income from your annuity. So how do you find out how much you could get from an annuity scheme? Thanks to the leaps and bounds made in technology today, you can find out information about different types of annuity, as well as get instant annuity quotes right from the comfort of your home.

There are many websites that offer free and objective advice about different kinds of retirement investment products, including different types of annuities. You can read about how they work and understand how different annuities would work for you. You can also explore information provided by different annuities companies on their websites about their products and how they work.

Using all this information, you can decide what kind of annuity might work best for you. Of course, you will need actual Annuity Quotes to make the final decision, and until just a few years ago, this would have meant having to visit each company or at least make phone calls to different annuity providers for their quotes. Today, of course, you need to do no such thing. You can get annuity quotes instantly from different annuity providers simply by entering the required information in the online form.

Using the information you provide, usually about your gender, location, age, amount of investment, and other information like health and lifestyle data, the annuity company can calculate how much they could afford to pay you. If you want to find out the maximum income you could get from an annuity, you can use online annuity calculators, which are quick, easy and convenient.

Most companies as well as independent websites offer annuity quotes for free. Online pension calculators and other tools are also usually free, as is the information and other resources available on the websites. If you need help understanding a product or assistance with how to make the choice, an independent financial advisor could give you objective and impartial advice. IFAs generally charge a fee which can be either an upfront one off payment, or a commission based fee which is paid after you have made a decision. So, making the right choice of annuity has never been easier and more convenient.

Instant Annuity Quotes Available Online

Annuities have become incredibly popular in the world of investments and retirement planning. For many, annuities serve to promote a retirement life that is worry-free, establishing a guaranteed income in some amount and allowing the consumer to budget for the years following their employment. For many, this investment strategy is priceless. There are several benefits to investing in an annuity. Most consumers take a portion of their pension to fund their annuity, allowing themselves to budget for a predetermined monthly income over the course of their retirement.  Using this strategy often leaves consumers questioning the amount they can anticipate once they retire. If consumers do want to invest in an annuity, they need to know what they can expect for guaranteed income. For most, they can simply input data online and find exactly what they need.

As technology has evolved to help make tasks easier, simpler, and friendlier for the user, financial services have become far more manageable for the average consumer and investor. This is especially true for those looking to invest in annuities. Annuity Quotes are available right online for most consumers and can be determined far easier than they ever could in the past. In fact, what used to take a visit to a financial adviser can now be determined right online by the consumer themselves.

Consumers can find their annuity quotes online fairly easily. The data entered is simple and can be filled in independently by the investor. Examples of information needed include age and the age of spouse if applicable and estimated pension value.  Consumers can even search for the best quote simply by creating criteria by which to search. They can search using health rates, smoker rates, guarantee period, purchase price, and escalation rates. Several websites even offer the consumer tips on how to use an annuity calculator to give them the most reliable rate or quote. These tips include applicable information on when to buy an annuity, age, state of health, the pension of a spouse, and gender.

Research is a crucial part of any investment strategy. This is especially true of annuity investments given that the income they produce most often sustains lifestyle during retirement. There can never be too much research done on the appropriate path to take when investing in an annuity. Annuity quotes are part of this research and because of technological advancements, most consumers can find annuity quotes online very easily. This can help them budget and plan for the future.

Why Look For Annuity Quotes Online?

Planning for your retirement is probably one of the most involving tasks. However, there are several, simple options that can save you a lot of money and time, while helping you to secure a future income. One such option are annuities. Like any other product, it is advisable to shop around for the best deals before making a purchase.

Shopping around for the best annuity deal has been made easier with the advent of the internet. Therefore, the better annuity providers have decided to make the search easier and cheaper by giving out annuity quotes online. Therefore, you can compare different quotes and pick the one that best suits you.

If you are an investment novice, you will find online annuity providers especially helpful. This is because you will get adequate information about annuities to help you make an informed choice. Online resources will explain the different types of annuities, and who is best suited to take a particular annuity. With this information and annuity quotes, you can choose the plan that best suits your current financial situation while guaranteeing your desirable future income.

Online annuity providers also give you tips on how to reduce your expenses. For example, they know when you can be tax exempt, and when you can receive higher annuity income, and can therefore advice on the appropriate plan for your lifestyle. For example, if you suffer from a terminal disease or life threatening condition such as diabetes, you are better off with an impaired pension plan.

The best thing about shopping for the best annuity quotes online is that it is convenient and affordable. Can you imagine what it would be like travelling to different places looking for quotes from the best companies? Well, these days, all you need is to use the numerous sites equipped with an annuity calculator.

When using an online annuity calculator tool, it is advisable to give all the necessary details so as to get the best quote. This is especially helpful because you can get a good quote without revealing your identity. Online annuity calculator allows you to shop for the best rate anonymously, which saves you tones of spam mails. Additionally, you get to check out different sites and get a rough average of the quote an annuity provider is likely to offer you based on your personal information.

Regardless of your reasons for choosing annuities as your retirement investment option, you will realize that shopping online is extremely convenient.

Call 0800 678 5139 to request your annuity quotes today.

Which UK Companies offer an Enhanced Annuity?

Many, if not most, consumers look to annuities to help them offset their living costs as they phase out of their working years and enter in to retirement. However, there are many options available to consumers that they often neglect to look in to each annuity that is available to them. For many consumers, this means missing out on an enhanced annuity, offered by an enhanced annuity provider.

With an enhanced annuity, a medical or health condition can actually work in the favor of the consumer. It can even boost annuity by as much as 50%. Enhanced annuities, otherwise known as impaired annuities, work on the notion that a consumer who has a medical condition will have a shorter life expectancy than a consumer who is in a better health state. Enhanced annuity providers believe that they will have to pay out an income for a shorter period of time, given the shorter life expectancy, and therefore, they pay out a higher level of income to the consumer. This allows the consumer to have more money each month, based solely on the idea that they have a medical condition that may shorten their life expectancy.

Nearly 20% of all annuities sold by providers are enhanced, or impaired, annuities. However, several of those consumers who would qualify for an enhanced annuity with an enhanced annuity provider, simply do not apply for the benefit. There are several general conditions that are used as qualification for an enhanced annuity. These include, but are not limited to, high blood pressure, cancer, diabetes, kidney failure, smoking, obesity, high cholesterol, and asthma. Consumers can qualify for an enhanced annuity through an application process that focuses on health and lifestyle conditions. There is hardly ever a medical examination required.

Not every standard annuity provider offers an enhanced annuity. In fact, there are very specific enhanced annuity providers currently on the market. The enhanced annuity specialists currently available include Partnership, Just Retirement, and MGM Advantage. Other enhanced annuity providers include Canada Life, Legal & general, Prudential, LV=, Aviva, and Reliance Mutual.

Any consumer that is looking to invest with an enhanced annuity provider, or any annuity provider, should consult with an independent financial adviser. Investing in any retirement plan can often be confusing and challenging but with so many options available to consumers, purchasing the right annuity for retirement can often be a daunting task for many. Using an expert for advice and information can help to ensure the consumer that they are making the best decision for their individual situation.

Inheritance Considerations when Choosing an Annuity

Choosing the right annuity can be a very big and impactful decision for most consumers. For most, making the wrong decision can be very costly and is truly not an option. With so many options available, choosing an annuity can be a very difficult decision and can be a decision that is accompanied by a great many repercussions if the right one isn’t made.

While choosing an annuity is an important decision, it is compounded by the idea that it is equally challenging for the consumer as it is important.  There are several different options available to the consumer when choosing an annuity. This includes several different types of annuities, all of which offer different enhancements and add-ons. Each one of these annuities has its own distinct set of advantages and disadvantages. Because each consumer has a unique situation, choosing an annuity can be a challenging concept, especially with so many different options available. Knowing exactly what is needed is the first step for every consumer as they look to decide how they should invest in order to ensure a comfortable retirement.

Some consumers are not just making a financial decision for themselves. Instead, they look to ensure that their dependents, spouse or close family and friends will also be financially stable in the future. For these consumers, there are unique options available, some of which are more expensive, that ensure that other beneficiaries can be listed on the annuity in the event of the death of the annuitant. Other consumers have a unique need for their annuity income. For some, it is truly a form of regular income off which to live. For others, it is income that is earmarked for various activities. Depending on what the income is used for, consumers might find that one kind of annuity works better than another. Lastly, for those consumers who are using the annuity income as a true way of living during retirement, there may be a need to save a certain amount of money in their pension. This means that the consumer might know exactly what their expenses will be once they retire and therefore, they may know exactly what they need from their annuity income. This means that they can tailor their annuity to ensure that the income they need is received based on what they are able to save in their pension fund.

Every consumer has different needs and choosing an annuity can be a challenging decision. However, because there are so many options available, there is often more than likely a perfect fit for those consumers who are looking to fund their retirement with an annuity.

The Facts about Annuities

The number of consumers looking to finance their retirement years with the help of an annuity continues to grow. Annuities provide a sense of stability and security for consumers as they age out of their working years and allow some sense of financial freedom for those who are looking to enjoy their retirement. However, consumers need to know all of the facts about annuities before they embark on an investment. These facts about annuities can be learned through an independent financial adviser or even through independent research by the consumer. Either way, it is important for consumers to get all the facts about annuities before choosing the right option for them for their retirement, similar to engaging in any other investment strategy.

There are several different types of annuities, all of which have different eligibility factors and qualifying guidelines. The facts about annuities varies between type of annuity which is why it is critical for the consumer to do as much research as possible before making any determination on how they would like to invest their money for the future and for their retirement.

Different Types of Annuities

There are several different types of annuities available for consumers, all of which have different factors and guidelines. There are enhanced annuities available for those consumers who have a documented illness that may shorten their life expectancy. This specific annuity requires documentation of the illness in order to qualify. There are also conventional annuities for those consumers who are mainly focused on having a guaranteed stream of income throughout their retirement. For those who want income for only a short period of time there are fixed term annuities available that will make payments for only a designated period of time. And for those who would like to try their shot at earning money during retirement, there are annuities that can be linked to designated investments in the financial markets. Regardless of the choice, consumers should be educated on the exact facts about annuities, and each type, before investing.

Annuity Rate Factors

Not only do consumers need to know the basic facts about annuities, but they also need to aware of how their annuity rate will be calculated. The amount that consumers can expect to receive from their annuity depends on several factors. The first of these factors is savings. Part of the annuity rate will depend on how much the consumer has managed to save in their pension pot. Secondly, where the consumer lives will impact their annuity rate. Providers can base annuity rates on the mortality rates associated with different parts of the UK. Health of the consumer will also be factored in to their annuity rate. If the consumer is in poor health not only may they qualify for an enhanced annuity but they may also receive a higher rate because the insurer assumes that they will not be making payments for as long as they would if the consumer were healthy. Lastly, the consumer’s annuity rate could be affected by the current rates offered by other annuity providers. This is basic competition in the market. If insurers need to compete for business, they will most likely keep their rates competitive to attract more business.

Consumers should know all of the facts about annuities before they decide to invest. This not only means becoming educated on what is available but also becoming educated on what factors may influence their annuity rate, and therefore, their income stream. Knowing all of the facts about annuities can only serve to help the consumer plan for their future and their plans once they retire.