Our Pension Annuity staff are friendly and helpful and will give you the most complete picture. They find the right pension Annuity for your circumstances and provide you with a free no obligation quote!
Our aim at Pension Annuity UK is to maximise your pension Annuity, whilst ensuring that you are in control throughout the process. It’s important that you select the right options for you, as everybodys requirements are different.
The Pension Annuity Market is one of the fastest growing markets with financial services. Over the last 15 years the amount of people buying a Pension Annuity has gone up by 300%. In recent years over 400,000 contracts were bought in 2007 and predicted for 2011 a staggering 525,000 contracts will be sold. It is expected to rise further due to the amount of people coming up to retirement over the next five years.
With the figures rising the government are trying to encourage people to shop around before buying a Pension Annuity because two-thirds of people buy from their Pension provider. when they could receive up to 30% more if they went to another Pension Annuity provider. They have even given it a name OMO which stands for "Open Market Option". Currently the average Pension Annuity purchase is £26,000 which is one of the reasons why people do not take the Open Market Option (OMO) . However there are many Pension Annuity Specialists like Pension Annuity UK who would love the opportunity to increase their retirement pension income. In some cases we could maximise their retirement income up to 30%.
Pension Annuity rates vary from provider to provider depending on your health, where you live and the life style you have. The Open Market Option allows access to external Pension Annuity providers who specialise in certain area's such as Conventional or enhanced Pension Annuities to achieve the best Pension Annuity rates.
A Pension Annuity Calculator Pension Annuity Tables are helpful to customers to achieve a rough esitmate of how much retirement income they may be eligible for. Unfortunately they are also misleading because you are unable to tell if the Pension Annuity rate is still available. The Pension Annuity Calculators and Pension Annuity Tables do not take into account some of the enhanced Pension Annuities and all impaired Pension Annuities which are the products you will receive the higher retirement income.
The main reason why companies provide a Pension Annuity Calculator is to use it as a sales aid for their customers which are designed to give a generic approach. Pension Annuity Calculators / Pension Annuity Tables should clearly state how the figures are calculated and when they were last updated.
Calculating the best Pension Annuity rates is a very complex business as everyone has different circumstances and different retirement requirements. That is why we believe customers should us a Pension Annuity Specialist who offers a whole of market option and performs an in depth Pension Annuity quote either face to face or via the telephone. Once the in depth Pension Annuity quote is completed, the Pension Annuity Specialist can determine if the client is a Standard/Conventional Pension Annuity or Impaired/Enhanced Pension Annuity. At this point the best rate can be obtained for you by negotiating with thePension Annuity providers for the highest Pension Annuity rate. Pension Annuity Providers are very competitive over the pricing their Pension Annuity rates, but also have to be very careful as they run the risk of wrongly calculating your life expectancy. That is why Pension Annuity Providers have professionals working for them to predict life expectancy from actuaries to medical advisors.
Unfortunately even when people do shop around they still don't proceed with the best Pension Annuity rate and stick with their original Pension provider as:
- It's too much hassle to complete all the complicated forms.
- It takes too long to check the best Pension Annuity rates with all the providers.
- Don't want the hassle of liaising with the Pension provider and the Pension Annuity provider.
- If they seek advice it will cost too much.
- They feel the Pension fund is not large enough, so no one else will help.
That is why at Pension Annuity UK we:
- Fill out all the documentation.
- Check all the Pension Annuity rates with the Pension Annuity providers.
- Operate a no fee / no obligation policy .
- No restriction on the size of people's Pension Annuity Fund.
Most companies are trying to reduce the cost of processing Annuities by operating online Pension Annuity application forms. At Pension Annuity Uk we believe this method has major setbacks:
Currently not all Pension Annuity Provers offer onine Pension Annuity quotes.
- They are not 100% accurate as not all of the required personal and retirement information is collected.
- It does not allow the Pension Annuity providers to competitively underwrite each case and give the Pension Annuity company a chance to beat the other Pension Annuity quote.
- Unlike most things, when you purchase a Pension Annuity it is a one off transaction, which does not help to gain knowledge through experience, so some sort of guidance is required in most cases.
- 60+% of people are eligible for an enhanced Pension Annuity quote due to health reasons. To obtain an enhanced Pension Annuity quote a full medical questionnaire is required.
- A Pension Annuity is for your lifetime so it's important to cover the detail.
This is why we do not use online Pension Annuity quotes. We operate a telephone based Pension Annuity Specialist service (see how our pension annuity service works), and our sole responsibility is to ensure that we get you the best Pension Annuity rate / product by supplying you with the information you require to make the best choice.
To ensure you have the confidence that you have made the best decision, we will not compromise on our service. That is why we talk and listen to all of our customers.
A Pension Annuity is purchased with the money you have invested in your Pension plan while you have been working. Once the Pension Annuity
is purchased it will provide a regular pension income though-out your retirement . This pension income is guaranteed until death no matter how much you had invested into your Pension fund and in some cases after death.
A standard/conventional Pension Annuity Is when the Annuitant is of good health and has a healthy life style. This Pension Annuity product will pay less to the annuitant because the Pension Annuity provider will predict that the Annuitant will live for a longer period than an Annuitant with health problems.
An enhanced /Impaired Pension Annuity Is when the Annuitant suffers from a health problem, even if the Annuitant is healthy but is overweight or smokes then they may qualify for an enhanced Pension Annuity. These Annuities will pay a higher Pension Annuity rate as the Pension Annuity provider estimates that the annuitant will not live as long as a Standard Pension Annuity customer. This estimation is solely the responsibility of the Pension Annuity provider. If they estimate that a customer will only live for ten years and actually lives for twenty the customer will still receive their regular retirement pension income for their entire life.
I think it is fair to say most people are aware of the fact that they can take a lump sum of 25% tax free cash, but there are many more options which all effect your Pension Annuity rate. The Pension Annuity Options are important as the Pension Annuity Options are designed to help you during your retirement or to protect loved ones after your death.
Would you like to be paid in advance or arrears- it's up to you?
If you choose in advance, you will receive your first payment as soon as your Pension Annuity starts. If you choose in arrears, you'll get your first payment at the end of whatever payment term you decided on e.g. if it was monthly, then you'll get your first payment one month after your Pension Annuity starts.
There's another small thing to decide too - and again it's a little bit morbid. If you choose to be paid in arrears, you can choose to have your payments made with proportion or without proportion.
With proportion means that if the Annuitant dies on a day other than the day on which an instalment of benefit is due, as soon as practicable after the next payment date the Pension Annuity provider will pay an appropriate amount which reflects, and is for, the period between the last payment and the date of death.
Without proportion means that no further payments will be made, so the last payment received is the one immediately before the annuitants' death.
An important thing to think about is what might happen to those dependent on you financially, if you were to die first. You might want to feel that they were protected so to speak; arranging for help with their bills and living expenses. There are a number of options that can help you to do this.
Would you like an pension income to be paid to your partner or dependent if you die first? If so then a Joint Life Pension Annuity is for you. When you take this option, your partner or dependant will continue to receive an pension income for the rest of their life after you die. It's a bit different if you have a child dependant. They will get paid once they reach a certain age. This feature gives you the flexibility to choose what proportion gets paid to your surviving partner or dependant. You can make sure your retirement pension income is paid to them at the full 100% of your Pension Annuity income, or you can choose to reduce the percentage. If you make your percentage high, it will lower your income. Make sure you are clear about who your dependent is. A joint life Pension Annuity might not suit you. Perhaps your partner already has a sufficient retirement income. It's all about assessing your own circumstances. You might prefer a single life Pension Annuity. With this, once you die, the Pension Annuity ends. In this case your annual pension income would be higher than with an equivalent joint life Pension Annuity.
Your Pension Annuity already guarantees to pay you for as long as you live. However you do have an option to have it paid for a guaranteed period between 1 and 10 years, to your estate or your chosen dependent, should you die within that time.
Of course, this is less important if you have already decided on a joint life Pension Annuity.
Inflation is a big issue currently and this will affect your retirement pension income. This means the value of your retirement pension income actually reduces the longer you live. You can opt to protect yourself and your pension income against the effects of inflation by choosing a Pension Annuity where your pension income increases over time, this is called escalation. Basically you have three options.
Level pension income means you will receive the same payment amounts for life. This means your pension income will therefore be vulnerable to inflation. The longer you live, the more inflation may affect you.
If you'd like to be a bit more specific about how much your annual pension income goes up by, year on year, then you can pick a percentage. Anything up to 8.5% is possible. This comes at a price. Your annual pension income will be a little lower, balanced by your protection against inflation of course. There's a chance that you'll receive more overall pension income when you look at the duration of your Pension Annuity.
It's possible to protect yourself by buying an Pension Annuity that rises in line with inflation. This costs a little more than an Pension Annuity with level pension income but will help you insure yourself against inflation.
When you buy a Pension Annuity you are able to take up to 25% TAX FREE CASH of your Pensionfund the remaining amount will be subject to pension income tax. You are able to access your tax free cash and defer your regular retirement pension income. The remaining amount must be used to purchase an Pension Annuity by your 75th birthday.
In 1978 the Finance Act was changed to enable people coming up to retirement to shop around for the best Pension Annuity Rate. They called it The Open Market Option ( OMO ) this stops Pension providers offering lucrative Pensioninvestment rates to entice their clients but not offer competitive Pension Annuity rates at retirement . Unfortunately the act did not make it compulsory for the Pensionprovider to promote to their clients that they may obtain a higher Pension Annuity rate with an external Pension Annuity provider. The Finance Act was changed to increase awareness and competition to the Open Market Option (OMO). The FSA in September 2002 introduced that the Pension providers have to send out a wake up letter just before their client is about to retire. The wake up letter would clearly state to their customer that they have the right to shop around using their Open Market Option (OMO) Rights. In 2003 the FSA added further support to the Open Market Option (OMO) by releasing comparison of Pension Annuity rates by Pension Annuity providers. This has seen specialist Pension Annuity providers come to the market for both standard Pension Annuities and enhanced Pension Annuities.
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