Annuities

An annuity will provide you with guaranteed income, for life.

An annuity is an insurance product that is purchased with your pension fund and turns that lump sum into a guaranteed income. An annuity provider uses life expectancy calculations to estimate how to turn your pension fund into a monthly income.

Therefore, making sure you get the right annuity could be the most important financial decision you will make. Once you purchase one you cannot change your mind! You can choose your annuity provider, so do not feel obliged to accept one that is being offered by your current pension provider. Note that if you choose an annuity to provide you with income in retirement you can still access some 25% of your pension as a tax-free lump sum.

Choosing your annuity provider is called the open market option, it allows you to shop around and can often achieve much better returns for you. If you decide to take charge of the process and make the decision yourself, you will benefit from speaking with one of our advisers here at PensionTracing Service. There are many options and alternatives available, and our advisers can ensure you get the most appropriate and best value annuity to suit you.

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