Pensions and Retirement Frequently Asked Questions

What annuity rate can I expect?

Answer

As you near retirement, your pension provider may offer you the option of buying an annuity through them. Whilst this is an easy and convenient option, your provider won't necessarily give you the best annuity rate for your hard earned savings.

To help you get the best rate, be honest about your health status and if you're a smoker. Certain health conditions may mean you could qualify for an enhanced annuity, which could pay up to 25% more.

The annuity rate you receive will depend of a number of factors, including:

  • Pension pot size
  • Your age
  • Flexible options you select
  • Any advice fees you pay
  • Current annuity rates
  • Your health and lifestyle
  • If you take tax free cash
  • Any tax you need to pay

Find out more about enhanced annuities

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