Understand Your Options.
Before you proceed to our quotation system you may like to read about all of the various options that you can take. Remember that there is no perfect answer - only the one with which you are most comfortable.
The quotations which you will see are actual quotes calculated by the insurers based on your specific details, including postcode. To get you started we will show you up to six variations including with and without guarantee, with a 50% partner pension and with and without RPI indexation. This will enable you to see how different benefits alter the annuity.You can then click on a quote to refine and this will enable you to alter the design of your annuity.You can produce a specific illustration direct from the provider and look at their key feature documents.If you wish you can then ask us to call you or ask us to help you to buy a specific benefit design.
Please note that if you smoke or have a medical condition these rates will be indicative only as there are a number of insurers in this market who cannot support this service. You should ask us to call you so that we can ask all providers to quote.
Your Pension Income - The decisions You Need to Make
The first thing you need to do is to decide whether you want your income to be guaranteed throughout your life or whether you are prepared to take some investment risk which could mean a fall in income as well as the possibility of a rise - up or down is entirely dependent on investment markets. We are able to help you to classify your attitude to investment risk and if you are tempted to look at unsecured pensions or other non guaranteed products we recommend an initial chat with one of our advisers. We will always calculate the yield that your fund would need to achieve in order to match the annuity you could buy today. Unlike most advisers we ask an independent actuary to do this as we consider their estimate of the yield to be more accurate than the quotes provided by insurers.
If you are clear that you want a guaranteed annuity then read on.
The purpose of the following pages is to help you to decide how you want your annuity to be paid in preparation for using our on line quotation service which allows you to order up to six different quotations at any time. The system will automatically find the best provider for each quotation basis. It works by accessing the provider's quotation system and so is an accurate quote rather than an estimate.
Payment Frequency
Whilst it is possible to have your pension paid annually half yearly or quarterly most people elect to take their income monthly at the end of the month. This is known as monthly in arrear. Normally if you die between payments no proportionate payment is made.
Spouse/Partner's Pension
You may want your pension to continue to a surviving named spouse/partner when you die. If so you need to decide whether the pension will decrease on your death and by what percentage.
Death Benefit
Regardless of whether you provide for a partner you can elect to have a guaranteed period whereby your pension will be paid throughout your life but if you die early your estate will receive income for a guaranteed number of years, which can be up to 10 years. As an alternative you can 'capital protect' your annuity. This means that on death before age 75 your estate receives the original purchase price less total payments made. Any sum paid under capital protection is subject to tax at 35%.
Inflation
You can elect to take an increasing annuity but if you do so your initial income will be lower. In simple terms you will receive the same value from an escalating or level annuity at your expectation of life that is assumed to calculate the rate. Therefore increasing annuities will be better value for those who live a long time whereas a level annuity will be better value if you die early. This information is designed to help you understand the maths - not to try to work out your date of death!
An increasing annuity can be at a fixed rate or linked to RPI.