Buying an annuity is a big financial decision, one that you have to get right. Remember, you don’t have to buy your annuity from your existing pension provider. You can use your Open Market Option to shop around for better annuity rates, particularly if your health or lifestyle means that you are eligible for an enhanced annuity.
Step one – decide on the type of annuity you want
This can be a conventional annuity, enhanced annuity or a fixed term annuity. Different types of annuity suit different people in different circumstances. You can read more about these different types of annuity here.
Step two – check what your pension provider is offering you
A few months before your retirement date, your pension provider will tell you the value of your pension pot and how much retirement income they will give you. This annutiy rate offered by your current provider is your starting point – it is the annuity figure you’re trying to beat by shopping around.
Step three – does your pension policy contain any valuable benefits or penalties?
Some pension policies, especially older ones, have valuable safeguarded benefits, such as a Guaranteed Annuity Rate (GAR) or Guaranteed Minimum Pension (GMP), hidden in the small print which can provide much larger annuity payments, but only if the annuity is purchased from the original insurer. These benefits would be lost if you purchased your annuity through another provider. Some policies can also contain penalties of which you need to be aware before reaching an annuity decision. Our Annuity Specialists can help you identify whether your policy contains any additional benefits or penalties.
Step four – get annuity quotes from other annuity providers
Check how much more annuity income you could receive in your retirement by getting annuity quotes from the UK’s leading annuity providers. Retirement Line provides free annuity quotes, without obligation, from the UK’s leading annuity providers on preferential terms due to the volume of annuity business we introduce.
Step five – arrange your annuity
Once you are satisfied you have weighed up all your annuity options and made the right choice, you can arrange your annuity. Retirement Line handles this stage for you, taking care of all the paperwork and keeping you informed every step of the way.