An annuity your financial provision for old age. It will provide you with your income after you retire; after your pension is passed over to an insurance company they will give you a regular income out of this money until you die. It’s crucial that you find the best annuity rate now because annuities are non-transferable, so you will be stuck with whomever you choose.

Shopping Around for Annuity

New measures drawn up by the Association of British Insurers (ABI) this year will ensure that pension providers who are members of the association will have to help their customers find better annuity deals, even if this means that the customer ultimately goes elsewhere.

Surprisingly, not all people decide to shop around when choosing their annuity, despite the fact that this will provide them with income throughout the entirety of their retirement, and the fact that by shopping around they might possibly increase their annuity by up to a third.

Comparing annuity rates is quite simple. You can do it online with the FSA, compare rates from various providers using Hargreaves Lansdown’s free annuity comparison service, or speak directly to an expert pension advisor.

What Annuity Rate Options Are There?

There are many different annuity options available, all of which will offer you differing amounts of money when you retire, depending on your needs. You must think about what you want to achieve with your annuity, and ask yourself:

• Do you want to convert your savings in stages, using a phased retirement plan?
• Are you well, and have you ever indulged in any harmful pursuits such as smoking?
• Do you want to be able to draw the same level of income from your annuity for life?
• Do you want your annuity to also provide an income for your partner after you die?

By asking these questions, and others, you will be able to determine exactly what kind of annuity you should be looking for when you decide to convert your pot into retirement income. The most important thing to remember is that you are under no obligation to buy an annuity. So if you are thinking about buying one, take your time, shop around and get sound financial advice beforehand, so you when you retire you will be able to see the maximum return on your years of hard work.

Getting Good Financial Advice

If you’re not sure about how to go about finding the best annuity rates for your needs then it may be time to consult with an expert financial advisor who will be able to talk to you about all of your retirement options. Independent pensions experts, such as those found at www.pensionswms.co.uk, will not only offer you advice but will be able to draw up a comprehensive retirement plan which will cover you for all eventualities, including making provisions for loved ones. With the proper consideration, your annuity should be able to provide both you and your loved ones with the retirement security you deserve.