We currently have official and unofficial inflation at a high point, effecting the elderly most. Therefore at retirement it is important you speak to a specialist annuity adviser. They can guide you through all of your options and search the whole market for the best annuity rates.

Many clients face the same concerns about inflation, knowing that there are no more bonuses, no more overtime payments and no more promotions. In respect of an annuity in the open market, by shopping around amongst annuity providers, a better conventional annuity rate can be found, but it is also the shape of the annuity that matters.

The most commonly known types of annuities are conventional annuities, inflation-linked annuities and with-profit annuities. Inflation-linked annuities are designed to change each year in line with inflation, but they pay less at the outset than a conventional annuity.

There is also a with-profits annuity. A with-profits annuity in turbulent market conditions has an income stream that is less susceptible to dramatic fluctuations in value. With a with-profits annuity your income will not fall below the minimum guaranteed level set at the outset, but future investment returns do present a degree of risk, as they are not guaranteed.

You really do need to understand the options when you come to buy your pension annuity.

Tags: with profits annuity

This entry was posted on Monday, October 6th, 2008 at 11:14 am and is filed under Annuity rates, Important considerations, with profits annuity. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.