Experienced Independent Financial Advisors at Enable know that there are several options to consider when buying your annuity and these will affect the income you and your spouse will receive for the rest of your lives so it is important to take time and consider your options thoroughly maybe with the help of an IFA.
These are the kind of considerations you should bear in mind:
■ Single or joint life: you can choose between a policy that simply pays an income during your lifetime, or continues to pay out to your spouse or partner after your death.
■ Level: an annuity that pays the same fixed amount every year.
■ Escalating: an annuity that rises every year, either in line with inflation or a set percentage, typically 3%.
■ Investment-linked: an annuity that makes payments at a level that changes depending on the performance of various underlying financial investments.
■ Smoker: the annuity is available only to smokers – although not to couples where only one is a smoker.
■ No guarantee: your income dies with you (unless you have a joint-life annuity).
■ Five- or 10-year guarantee: if you die soon after retiring, your estate will continue to get your full income for five or 10 years after you retire.
■ Enhanced/impaired: some providers will pay a higher income if your lifestyle, previous occupation, or illnesses or conditions are likely to mean you have shorter life expectancy.
The simplest annuity - a single life, level contract - will generally pay the highest income.
Still unsure? Then why don't you pop in for a chat.
No comments:
Post a Comment