What The FSA Say

The FSA (Financial Services Authority) is an independent body set up by government to regulate the financial services industry and protect consumers.

Buying an annuity

The FSA state that the key messages for consumers are:

Annuity options

Buying an annuity is an important step and you do have choices. These choices are crucial because they affect how well-off you might be in your retirement. There are product options as well as annuity options, and there are choices as to how you receive your annuity income.

Best annuity rates

You should shop around for the best annuity rates before making any decisions. Contrary to popular understanding, you do not have to buy your annuity from the same insurance company you built your pension fund up with. The best annuity rates could be available elsewhere. 

There are key questions which you need to think about to help you choose a suitable annuity from the various  types available which meets your needs. Questions include:

Is the annuity just for you or do you have a spouse you want to provide for? Might you want a joint life annuity?

If you suffer from ill health, is a high initial income your priority? Might you be eligible for an enhanced annuity or an impaired life annuity?

Best annuity

Buying an annuity is an extremely important financial decision and one that will affect how you live for the rest of your life. You owe it to yourself to try and ensure you end up with the best annuity and the right options.

However, not only do you need to get the best annuity, you need to get the right options to go with it.