Most people don't realise that they would be far better off if they took the open market option and shopped around for their annuity. The trouble is, it’s all too easy to accept the first offer you get from your existing pension provider.
Things to consider
The difference between the worst and the best basic rates available can be huge. However this isn't the only consideration, if you’re in poor health, a heavy drinker, or a smoker, you could qualify for an enhanced annuity. You should also look at whether they are offering a single or joint-life annuity and whether it’s a level or escalating annuity.
Before you sign up with your existing provider it's worth remembering a few key points:
- All pensions are portable and everyone has the right to look for the best offer available. And it's not difficult to shop around with the help of an expert. What's more, it could make a difference of thousands of pounds to your retirement income every year.
- It's not just a matter of getting the best rate; it's also important to choose an annuity that suits your needs. Not all annuities are the same, and if you don't choose carefully, you could be missing out on the right product for you.
- You can't change your mind once you have taken out an annuity. So, you need to be sure that you've got the best deal and that the provider you've chosen is financially secure.
When deciding which option to take at retirement there is a lot to think about and our expert pension advisers will ensure you make the right decision to suit your retirement needs.
Visit the Annuity Shop if you're certain an annuity is the right option for you, but you'd like us to shop around to find you the best deal.