Don't Get Stuck With Rock Bottom Annuity Rates
Author: Annuity Choices Ltd
It would be surprising for today's retirement annuity buyers not to be aware of the fact that annuity rates are not as high as they once were.
Although annuity rates in the UK are now at the lowest that they have been for 20 years, financial pundits still expect annuity rates to worsen over the longer term.
Even though annuity rates are low, there are still things that an annuity buyer can do to improve their chances of receiving a higher annuity income.
Firstly, unless you need the extra income now, there is no hurry for you to buy an annuity immediately.
You don't have to ‘panic buy' an annuity from your existing pension provider.
Annuity purchase at retirement is no longer mandatory in the UK so you can take your time to shop around for a better annuity rate (and also consider the annuity alternatives).
If you have decided to buy an annuity, you first need to decide which annuity options you want to add.
You should be very careful at this stage and only choose the annuity options that are absolutely essential for your personal circumstances.
Why is this?
Because, in general, annuity options come at a cost, the more you add the lower your final annuity rate is likely to be.
Once you have arrived at your optimum number of annuity options you need to turn your attention to the task of finding the best annuity rates.
You can start by looking at the standard annuity rate comparison tables published in the financial press and on the Internet.
These annuity comparison tables are fine as a guide but they are not exhaustive.
Generally, they don't show you any enhanced or impaired life annuity rates that you may be eligible for.
You can really boost your eventual annuity income if you qualify for an enhanced annuity rate.
Enhanced and impaired life annuity rates take into consideration an applicant's postcode, employment history, lifestyle habits and medical history. By examining all of these factors the annuity provider is able to more accurately predict the prospective annuitant's expected lifespan.
Without getting too technical, the outcome of this is that if the annuity provider thinks an annuity applicant is likely to die younger than the average person of the same age they'll offer them a higher annuity rate for life.
This is a ‘win win' situation as both parties benefit. The annuity provider won't have to pay out for as long as they would do for a healthier annuitant and the annuitant gets a higher annuity income to compensate them for their potentially shorter lifespan.
Shockingly, of all the annuity buyers that could qualify, very few actually come forward to claim one of these higher annuity rates. This comes as no surprise as a fair amount of pensions/annuity knowledge is called for which most ordinary people just don't have.
If all this is starting to sound a little bit complicated, don't worry.
There are plenty of knowledgeable annuity experts out there who are more than willing to help you.
These annuity experts arrange all kinds of annuities everyday, and just like any other qualified professionals they have the skills and contacts to enable them to get the job done quickly and on the best possible terms for you.
By using the services of a professional annuity adviser, not only can you improve your chances of obtaining the best annuity rates on the market but you will also receive advice and recommendations regarding the best annuity options for your needs and circumstances.
If you live in the UK or have pension funds in a UK pension scheme, you can find out more about buying an annuity, the different types of annuities and the importance of getting annuity advice by visiting http://www.pensionchoices.com