Site Index
Annuity RatesYou could be up to 30% better off, or even more, by getting the right annuity rates. Click here for to see if you might be eligible for higher annuity rates.
Annuity OptionsYou can add various options to your annuity to match with your personal circumstances. Click here for details of the options that might apply to you.
Annuity TypesIt’s very important that you select the right annuity for your requirements. Click here for details of the various annuities available.
Guaranteed Annuity Rates
A guaranteed annuity rate, commonly known as a GAR, is a fixed rate, written into your pension contract, at which you can convert your pension fund into an annuity at retirement, irrespective of what open market annuity rates are doing at that time.
Conditions for guaranteed annuity rates
Quite restrictive
There are normally some conditions written into the application of the GAR. It is usually only available at the scheme’s selected retirement age, i.e. it will not apply if you retire early or if you retire late.
Possible disadvantages
A lack of options
A GAR will normally only provide an annuity on your own life and often will not provide for post retirement increases. So you must take care if there are any annuity options you might want, i.e. if you are married and wish to provide spouse’s benefits on your early death with a joint life annuity, or if you are seeking a rising income in retirement, perhaps with an inflation proof annuity.
Potential attraction
A higher retirement income
The attraction and value of the GAR is that it can produce annuity payments for life that are higher than anything you can get by applying your fund to buy an annuity from any other insurance company at the time you retire.
Important footnote
The downside to guaranteed annuity rates is the restrictions which may apply that are highlighted above, i.e. based on your own life only and when you can retire, and advice should be taken if a GAR is an option open to you at retirement.