Make sure you shop around for the best pension annuity rates, perhaps enhanced rates are appropriate for you. If you’re looking for an annuity you should ensure you consider as many options as possible to make sure that you have enough cash to live comfortably enough during your retirement, a financial expert has said. According to a leading pensions analyst from Hargreaves Lansdown, Laith Khalaf, those who shop around utilising their valuable open market option (OMO) for better annuity rates could boost their retirement income by around 20% on average. Some retirees could actually see much bigger increases to their retirement incomes by shopping around, especially if they suffer from ill health.
However, many people are not considering buying an annuity at all, which could leave them in an uncomfortable financial situation when they finish full-time work. Take-up rates for annuities are still not as high as we would like them to be, the take-up should be higher, suggests Mr Khalaf. Commenting on financial affairs for the over-75s, the financial expert said that, while some important things are improving for the age group, there is still a way to go. This is supported by figures recently released by the Alliance Trust showing that the over 75′s are actually being hit with the highest level of inflation, at 1.7%. However, if these people had bought an annuity with best annuity rates, enhanced possibly, they could possibly afford ongoing inflation better.
