It is not often we are given guarantees; but we are with pension annuities. Whatever type of variation of a straightforward pension annuity, you get a guaranteed annuity rate. You know exactly where you stand, whether it’s a conventional annuity, an impaired life annuity, an enhanced annuity, a single life annuity, or a joint life annuity with spouse’s benefits. You get the idea.

However, take a with profits annuity, an income drawdown contract, or one of the new variable annuities where you have to rely on investment performance, then there has to be a big question mark with the current market volatility. You have to rely too much on the investment element of the contract for the whole thing to work to your advantage.

So go on, treat yourself to a guaranteed annuity rate. Rates are pretty good at the moment.

There are a few annuity companies with competitive annuity rates. Legal and General annuity rates are good. Norwich Union annuities and Aegon Scottish Equitable annuities are good, especially for conventional annuity rates. LV=, MGM Advantage, Just Retirement, and Partnership have good annuity rates for enhanced annuities and impaired life annuities. Prudential and Friends Provident often come out well. Norwich Union, Prudential, and Legal and General are offering postcode annuity rates. Some even offer with profit annuities.

All a bit of a minefield. Read through this annuity website for full information.