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Annuities These are usually purchased at normal retirement date or before age 75 if a Drawdown arrangement has been set up. They are a method of converting a current capital amount into an income or pension which is usually paid for the rest of one’s life. Provisions are normally made for widows, widowers or dependents to protect them. The majority of policyholders believe that the ultimate pension will be provided by their pension insurer. This is not the case. All policies have an Open Market Option giving you the right to move your funds to another insurer if they can offer better annuity rates (higher income). We have an electronic system which advises us 24 hours a day who is currently offering the best terms. We will deal with the transfer of funds on your behalf. Currently there are a number of schemes available which provide for an income at retirement but they allow you to defer the ultimate annuity purchase. By allowing the funds to remain invested up to a maximum age of 75 there is the prospect of improving the ultimate pension. They come under certain names such as Drawdown and Phased Retirement Policies. If you already have a Drawdown or Phased Retirement Policy which is largely invested in Equities you may be very concerned with your current position. Call us. It is essential to obtain professional advice at retirement and afterwards so that you fully understand all the potential advantages as well as the many risks. Give us a ring or contact us via our Enquiry form. |
