Getting the best annuity isn’t just about the best annuity rates. There’s a statistic, around 40% of people at retirement are actually eligible for enhanced annuity rates, but only a few apply; the rest lose out. I’m sure it’s true, but there are other issues to consider, and it’s not just about getting the best annuity rates. You need to make sure you purchase the right annuity with the right options, and this is especially important if you have ill health or if you have dependants. For example, if you suffer from ill health you should be considering an enhanced annuity contract rather than a conventional annuity, and, if you’re married, you should be thinking about a joint life annuity rather than a single life version. Then there’s inflation to consider, and what happens to your hard earned investment should you pass away shortly after buying your annuity.
Our view is that you should be prepared to take advice as it can make a significant difference to your annuity income. Many people are much better off in their retirement as a result of taking annuity advice when purchasing their annuity. It is such an important financial decision, often with many tens of thousands of pounds involved, and one that you really can’t afford to get wrong. You could live until you’re in your 80′s, health permitting, so the financial decision you take now has crucial long term consequences, and buying the right annuity with the best annuity rates can result in thousands of pounds of extra income over the course of your retirement, but it needs to have the right options.
