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An annuity is a contract with an insurance company where you pay in a
lump sum - normally from your pension plan - in exchange for a regular
income.
Your existing insurer will write to you in advance of your pension plan
retirement age, giving you an offer of income based on the value of your fund and your age. You have the
right to shop around and use the 'open market option' to see if you can improve on their terms.
It's the only kind of contract that guarantees to pay you an income for life, no matter how long you live and it's important to make the right choices when purchasing your annuity as, once it is set up, you
normally can't change it.
Annuities are provided by insurance companies and rates will differ from company to company in the same way that car insurance quotes can differ if you
shop around. Annuity rates can change frequently and some companies are often more competitive than others.
Bank of Scotland Annuity Service have a friendly team of annuity experts who can help you decide which annuity might suit you
best. They can provide you with complete confidence and peace of mind
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