Annuities

An annuity is purchased by a pension fund to provide you with a regular income, for life. Getting the right annuity could prove to be the most important financial decision you will make, as once purchased you cannot change your mind.

You have the right to choose your own annuity provider, rather than accept that being offered by your existing provider. This is called an open market option. A fresh approach to reviewing such a wide range of options from an alternative provider is likely to significantly improve your returns.

Robert Bruce Associates provides individuals with a thorough and qualified evaluation of the annuities market-place as part of a review. This will make you fully aware of the options available to you. If you have any questions or if you would like to arrange a review call 0845 600 6080 or email info@rbaifa.co.uk.

Some general facts about annuities

1. An annuity provides a secure and regular income for life.
2. At retirement, your pension fund is encashed to provide a tax-free cash sum, and the balance is used to buy an annuity from an insurance company.
3. Cash provided is tax free.
4. You can also buy a spouse or dependant’s benefits (but this will reduce your own annuity).
5. Annual, one-off guarantees and spousal benefits are additional options available at the outset.
6. After finalising your annuity, you may not be able to change your mind, or your benefits received.
7. You can choose a level or increasing annuity; payable monthly, quarterly or yearly, in advance or arrears.
8. An income drawdown or phased retirement provides one alternative to annuity purchase.