Did you know

The difference between best and worst conventional annuity providers’ rates can easily be as much as 19% – for example, Mr B was offered £4,312.28 with his existing pension provider, however The Annuity Bureau were able to increase this figure to £5,337.48 by sourcing an annuity on the open market. A difference which could amount to £17,428.40 or more over a typical retirement period.

·        You can take some of your pension savings as a pension commencement lump sum which is paid tax-free.

·        You don’t have to buy your annuity with your current provider. Choosing the right insurance company could add more to your income. When you retire we can research the market place for you to ensure your pension is set up with a leading provider on competitive rates.

·        You may qualify for an enhanced annuity rate if you are in ill health or have had any previous illness or major surgery, which is likely to reduce your life span.

        The illnesses include diabetes, liver impairment, hypertension (which cannot be controlled by medication), heart conditions and many types of cancer, whether or not you are in remission.

        Certain lifestyle conditions, such as smoking, may also qualify for an enhancement.

·        You can often obtain a better deal if you combine your benefits from different sources. So remember that we may be able to help you with other pension funds you have.

·        You don’t always have to purchase a pension (conventional annuity). Alternative income-generating solutions are available, and may be suitable for your individual circumstances and situation. These include unsecured pensions, impaired life and investment-linked annuities.

Please contact us for a no obligation discussion with one of our consultants, if you would like further information about any of these alternatives

Top personal pension annuities

Notes: Figures assume an annuity purchase price of £100,000, single life, no guarantee period and are shown as gross annual income, paid monthly in arrears. Smoker rates are based on someone who smokes an average of 20 or more manufactured cigarettes a day. Impaired rates are based on someone who recently suffered cancer and is receiving Chemotherapy. Medical evidence is required for an impaired life annuity. Rates as at July 2010.

Source: The Annuity Bureau.