Pension annuities

Understanding pension annuities

Annuities were traditionally the main way people took their income from their pensions. With drops in gilt rates and interest rates, and the government introducing Pension Freedoms in 2015, income drawdown has now become more popular. Nevertheless, annuities are still the only way to provide a guaranteed secured income from your personal pensions, so they must always be considered.

Our pension advisers will help you to understand all your retirement options. Considering both drawdown and annuities is the best way to help you make better-informed decisions on the right option for you. Our advisers will also find you the best rates available on the open market, taking into consideration your personal circumstances. And they’ll compare your existing pension providers against those market rates to ensure you get the highest level of income possible for retirement.

Are annuities still worth it?

Annuities still provide a guaranteed, secured income with no investment risk. So, they should always be considered when looking at your pension options for retirement.

Factors such as your health and lifestyle could increase the rates, so without proper comparison, you can’t make a fully informed decision. Sharing your situation, objectives, and attitudes towards risk will help an adviser understand what option is best for you and provide you with vital advice.

How do I increase the income my existing pension provider is offering?

The annuity market is competitive, and who provides the best rates changes from one month to the next. That’s why it’s important to get a comparison of your existing pension provider against what’s available on the open market.

You should also ensure you’ve completed a health questionnaire, since factors such as your health and lifestyle could also increase the rates being offered. Without doing this, you could be losing out on hundreds or even thousands of pounds of additional retirement income each year.