Tag Archives: Pension Savings

Use Independent Financial Advisors as Annuity Specialists

Annuities allow you to exchange your pension savings for a regular income throughout your life, or for a certain pre-agreed period of time. They are one of the most popular ways to provide financial security during retirement. There are various types of annuities out there – fixed conventional annuities, lifetime annuities, joint life annuities, variable annuities like escalating annuities, or investment linked annuities. Annuity specialists and independent financial advisors can help you understand the different types of annuities and make an informed choice.

There are different kinds of financial advisors, those who specialise only in a certain product, and independent financial advisors who specialise in an entire sector – for instance financial planning for retirement. Annuity specialists or advisors with expertise only in the annuity market are able to offer advice only on annuities, obviously. They can help you identify your needs and choose the best annuity product available in the market.

As opposed to annuity specialists with expertise only in annuities, independent financial advisors can offer help and guidance on an array of investment and insurance products like annuities, equity release products, lifetime mortgages, etc.

As such, independent financial advisors are generally equipped to offer advice about the entire spectrum of equity based financial planning. Annuities are one of the many solutions for financial planning during retirement, and may not necessarily suit everyone. Speaking to an independent advisor therefore helps you identify the best option from a range of investment products – not necessarily just annuities.

At the same time, independent financial advisors too can offer detailed advice only about annuities, just like annuity specialists can. There are different types of annuities, and choosing the right annuities involves understanding your own needs, understanding the different types of annuities, and making an informed choice to suit your circumstances. An independent financial advisor can help you make this decision by guiding you through all the steps of the process.

Choosing an annuity is one of the most significant and important decisions of your life. An annuity once purchased cannot be cancelled or reversed, and it has an impact on your financial security for the rest of your life. It is therefore important to give the decision making process the effort and time that is due. Annuity specialists and independent financial advisors can offer impartial and objective advice that is not biased towards any particular provider, but towards your own circumstances and needs.

How to Find Out Your Annuity Fund

We are living for longer today than ever before. At the same time, the cost of living is ever rising. Changing social and economic factors mean that planning your finances during retirement has become more important than ever before. After all, retirement is known as the golden period, when one should be able to enjoy the fruits of life’s labour. It is therefore vital to plan carefully and optimise your financial assets to provide for you when you stop working. Things like annuity value prove to be immensely significant during retirement, as an annuity is one of the most important, and often the only source of income for pensioners.

An annuity provides a regular and steady income in exchange for a lump sum. People usually invest their pension savings into an annuity scheme, which then pays out an income either for as long as you live, or for a pre-agreed period of time. How much income an annuity can offer you, or annuity value, depends on the size of your Annuity Fund, which is the amount invested in the annuity, as well as various other factors.

The most important factors that determines annuity value is the type of annuity you choose to invest in and the current annuity rates. Other factors include age, gender, and location. Depending on your health and lifestyle, you could also be eligible for an enhanced annuity, which has a higher annuity value based on the shorter than average life expectancy of the applicant.

Often an annuity is the only source of income during retirement, and so choosing the right annuity with sufficient annuity value is extremely important. Once you buy an annuity it cannot be changed or cancelled – so it is important to make the correct decision the first time around. An annuity offers a chance to make the most of your life savings, but choosing an annuity that underperforms or does not suit your needs could mean losing your life savings to an ineffective investment.

It is imperative to shop around and use the open market option to find the most suitable annuity with a sufficient annuity value. You can consult an independent financial advisor with expertise in the retirement sector to understand the implications of investing in different types of annuities and choosing the best option. You can also use online tools like annuity calculators etc. to find out the best annuity value you could get in exchange for your annuity fund.

Guaranteed Annuities can secure your retirement future

Annuities are one of the most common and popular ways to turn pension savings into a regular income during retirement. There are many different types of annuities – and fixed guaranteed annuities and variable annuities are the two main types. Guaranteed annuities provide a guaranteed income during old age, either until you die or for a fixed, predetermined period of time.

As opposed to variable annuities, guaranteed Annuities or level annuities offer a guaranteed income to be paid for a fixed period of time. This can be for a fixed period such as five or ten years, or in case of lifetime fixed annuities, until the end of life. Guaranteed annuities offer the peace of mind and security of knowing exactly how much you will receive and for exactly how long.

Having the security of knowing that you have a fixed, regular income no matter what can not only offer peace of mind but can also be very useful when planning your budget in the short term, as well as the long term. Knowing exactly how much your income is going to be can help you plan your finances and adjust your lifestyle to suit your income. You can also plan ahead for any additional expenses and make sure that you have enough money when you need it.

With rising costs of living, rising inflation and people living for longer than ever before, financial planning during retirement has become extremely important. A proper budget is one of the most important tools for financial planning when you have a limited income – and this is especially relevant during retirement, as retirement is the time when most people need to optimise their life savings in order to make the most of them. A retirement income is meant to support your day to day expenses, as well as any other expenses you may have from time to time, and guaranteed annuities can help you plan these expenses properly.

For instance, if you need to plan a big one off expense such as a holiday, a gift to your children, or home improvement works, you can plan it ahead so that you have enough money to meet your monthly expenses and enough saved up for the one off expenditure.

A fixed guaranteed annuity offers a steady and stable source of income for a fixed period of time, or until the end of life, depending on the terms of the annuity purchased. Since you know exactly how much money you will receive, at what intervals, and until when – you have the freedom to plan your expenses in a manner most suitable and comfortable to you. For those who rely solely on their annuity for income during retirement, guaranteed annuities can offer the most reliable and stable form of financial security.