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Q&A » Pensions
I am a 58 yr old man with some slight health issues and about £50000 in pension savings.
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153I have never heard of it, but its not offering anything special. Before you convert any pension policy into an annuity, you should get brokers to provide comparative quotes. Loads of brokers offer this service both on and offline. You pick the terms of the annuity that you want and then take the highest offer.
There is little point in getting any quotes until you are ready to take them up - the market is too variable, and looks like continuing to decline till rates rise. Also, new legislation MIGHT ease the rules on annuities and might give you additional options.
You might also be able to put your policy into drawdown and delay any annuity, does this site cover that option?
Posted on 01 September 2010 |
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0 153The enhanced annuity is just the usual shopping around as far as I can see.
Posted on 01 September 2010 | Love 0 loves
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1Remember that buying an annuity is a one-off, irreversible transaction, so for goodness sake find out your options before making a decision and don't use an online broker without really doing your homework. Very often they are not giving advice per se and your recourse if they screw up is limited.
Better to get advice from a good financial planner, (ask family or friends for a referral) and pay a fee to have them go thorough all the options with you. It'll be money well spent. They should cover:
- Lifetime annuities (standard terms and enhanced)
- Investment linked annuities (With profits and Unit Linked)
- Fixed term annuities
- Variable annuities
- Unsecured Pension (more often called Income Drawdown)
If your adviser can't explain all of these in detail, walk away and find another one who can.
HTH
Pete
Posted on 02 September 2010 | Love 0 loves
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4Locking into a lifetime annuity at such a young age is going to have a big impact on your monthly income. When you're talking to your independent adviser, consider temporary annuities that allow you to review your options at the end of a fixed period.
There are an increasing number of these products available aimed at people like yourself who don't want to risk capital.
Posted on 03 October 2010 | Love 0 loves
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