An annuity converts the pension fund that is often a lump sum amount into a regular income which will last as long as you live. This income thats received on a regular basis is taxable and this amount will depend on the very best annuity rates the annuity provider offers, size of your pension pot, health, age, gender, and also the type of annuity product that you choose. If you are looking for the best annuity rates UK, here are a few important things that you need to know.

There are a large number of annuity providers currently available, each offering a whole range of different products. For this reason, it may be a good idea to seek the services of an independent financial advisor who will make use of an annuity calculator and provide the best annuity quotes available.

Open up Market Option

In the UK, the Open Market Option or the OMO causes it to be really easy for people to choose the finest annuity provider. Most people nevertheless assume that they have to purchase annuity from the same company that is holding onto their pension. Studies have revealed that in the year 2007, there have been about 61% of people who did not look around when buying annuity and this is due to lack of awareness. However, this is no longer the case. The Open Market Option gives people the freedom to look around and get the best offers and today people are more informed about the options they have accessible.

Enhanced Annuity Rates

A person may be eligible for enhanced annuity if he:

— Is a regular smoker or even has been smoking continuously for ten or more years
– Takes medication
– Has been put in the hospital for a medical condition previously

Even though you have a mild medical condition, there are specific annuity companies who can provide an income boost in the name of enhanced annuities. Whether you are a regular smoker or someone who has health related conditions, you might be eligible to receive income up to 40 percent higher than those who have purchased a standard annuity. There are even higher enhanced annuity rates which are suitable for individuals suffering from serious medical conditions.

Award Calculator

There are means of calculating your regular income through the internet before you talk to an annuity provider. The annuity calculator is the fastest and the simplest way of finding out an estimate of the amount that you may be eligible to receive.

The need to save for pension has become quite clear over the last couple of years. But, the annuities and retirement benefits sector is perhaps guiltier compared to other sectors when it comes to getting complicated jargon and terms. This is not at all helpful whenever one has to make the most important financial choices and decisions especially for post retirement.

While the need for acquiring impartial and independent financial advice and suggestion can be essential when it comes to selection related to your pension options, it is also important that you understand the lingo related to this field because this will make you more comfortable when making your decisions and considering your options.

open market option


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