Tag Archives: Types of Annuities

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.

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.

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.