A couple of case studies to illustrate the benefit of (a) shopping around for the best annuity rate for your circumstances using the open market option (OMO), and (b) using a specialist annuity adviser to find you that rate.
1. Mr. J., a diabetic with heart problems, approached a specialist annuity adviser as he neared his 65th birthday. He was considering drawing his pension annuity retirement income and wanted comparative quotations to see the level of annuity income he would receive from an impaired life annuity.
The quotations ranged from an annual annuity income of £6805 to £7808 – a difference of over £1000 per year (based on a fund of nigh on £95000).
2. Mr.D., who had suffered a heart attack and could no longer work in his usual role. He approached his personal pension provider who offered him an annuity income of £780per annum (based on a fund size of just about £11000). By using a specialist annuity adviser he increased his level of annuity income by over 25% to £969 per annum.
So there you have it, seek advice and shop around for the best annuity rate.