An annuity converts the pension fund that is normally a lump sum amount into a normal income which will last as long as you live. This income that is received on a regular basis is taxed and this amount will depend on the very best annuity rates the annuity provider offers, size of your pension pot, health, age, gender, and the type of annuity product that you choose. If you are looking for the best annuity rates UK, here are some important things that you need to know.
There are a large number of annuity providers currently available, each offering a whole selection of different products. For this reason, it may be a good idea to seek the services of an independent financial advisor who will make use of an annuity calculator and provide the very best annuity quotes available.
Open Market Option
In the UK, outdoors Market Option or the OMO causes it to be really easy for people to choose the best annuity provider. Most people still assume that they have to purchase annuity from the same company that is holding onto their pension. Research has revealed that in the year 2007, there were about 61% of people who did not shop around when buying annuity and this is due to lack of awareness. However, this is no longer the case. The Open Market Option gives people the freedom to look around and get the best deals and today people are more knowledgeable about the options they have accessible.
Enhanced Annuity Rates
A person may be eligible for enhanced annuity if he:
– Is a regular smoker or even has been smoking continuously with regard to ten or more years
– Takes medication
– Has been put in the hospital for a medical condition previously
Even though you have a mild medical condition, there are specific annuity companies who can offer an income boost in the name of enhanced annuities. Whether you are a regular smoker or even someone who has health related conditions, you may be eligible to receive income up to 40 percent higher than those who have purchased a standard annuity. There are even greater enhanced annuity rates which are suitable for individuals suffering from serious medical conditions.
There are means of determining your regular income through the internet even before you talk to an annuity provider. The annuity calculator is the fastest and the simplest way of finding out an estimate from the amount that you may be eligible to get.
The need to save for retirement has become quite clear over the last few years. But, the annuities and retirement benefits sector is perhaps guiltier compared to other sectors when it comes to having complicated jargon and conditions. This is not at all helpful whenever one has to make the most important monetary choices and decisions especially for post retirement.
While the need for acquiring impartial and independent financial advice and suggestion can be essential when it comes to selection related to your pension options, it is also important that you understand the lingo related to this field because this could make you more comfortable when making your choices and considering your options.
Author: MillinCanney632This author has published 24 articles so far.