Is an annuity complicated ?
Arriving at an annuity rate to apply to your pension fund at retirement to calculate your important post-retirement income is complex. Look at the various components: an interest rate, inflation, longevity, complex internal calculations. The result…a recipe for confusion. And, don’t forget, if you get it wrong it could cost you tens of thousands of pounds over time.
That’s not all; what type of annuity do you go for: a with-profits annuity, a flexible annuity, a conventional annuity, or an enhanced annuity ? To make it worse you have got to think carefully about taking a joint-life annuity rather than a single-life annuity. That way, a married man, upon death, can see an income continuing to be paid to his surviving wife. If that married man simply took a single-life annuity by mistake, then his wife would be left with no pension income.
All this does make the whole issue of buying your annuity at retirement a complex matter. The solution…seek advice from an independent financial adviser; use the service available via this website www.rightannuity.co.uk .
Tags: enhanced annuity, flexible annuity, lifetime annuity, with profits annuity
