Annuity Options ExplainedApollo Pension & Investment Advisers | Medway, Kent
If you are looking to retire shortly, you may have started to receive information from your current pension provider(s) asking how you want to receive your pension. This will normally be in the form of a lump sum (usually 25%), income or a combination of the two.
If you decide that a regular level of income which is deigned to last your lifetime is desirable, you will need to know about annuities as these may well suit you best.
There are a number of different types of annuity that are available to you, which include: open market annuities, flexible annuities and enhanced annuities. These are the most popular types available and can be arranged to include different features and benefits suited to your needs and requirements throughout your retirement.
Your current pension provider will often provide you with a limited range of standard annuity options and often unless you specify, they will exclude certain options that you may require within your annuity. If you have current or ongoing medical conditions you may qualify for an enhanced annuity. An enhanced annuity can significantly increase the level of income you receive from your annuity. Your existing provider may not be able to offer this to you.
Choosing the Right Annuity
The annuity option that you choose will affect how much income you receive, how the income is paid to you and the affects on your income if you wish to include a benefit for a spouse. It is therefore vital you get the annuity that suits your requirements. Looking at the open market annuity option will enable you to include all the features that you require and ensure you get the best rates available in the market.