Anuity

Micklosh

Hi
I have a sum which I wish to use to buy purchase an pension anuity. What are the best ways to go about this please

tacpot12

I would use the Money Advice Service annuity comparison tables. See https://www.moneyadviceservice.org.uk/en/articles/how-to-shop-around-for-an-annuity

Linton

Talk to an IFA. They will be able to recommend an annuity that best meets your needs and will be able to search the whole market for the best rates. If youwish, they will also be able to discuss with you whether an annuity is the most appropriate product for your particular circumstances.


If you look for an IFA, the I for Independent is very important. Someone who describes themselves just as a Financial Advisor may be restricted in the options they can offer. You should be able to find a small local firm on the net or in your high street who should be cheaper than a national company.

cobson

I note the Money Advice Service's comment about 'not hiding your unhealthy lifestyle' in order to maximize the annuity rate. If that's the case, why doesn't everyone claim to have an unhealthy lifestyle ? What do they do, ask you to send your empty fag packets in as proof ?

wjr4

Personally, I would get independent financial advice as they will take into account your circumstances, health issues and advise the best annuity. For example, do you need a guarantee period, spouse death benefits, value protection etc? Is an annuity even the best option, especially at the moment when interest & annuity rates are low? There's lots to think about.

Dox

cobson wrote: »

I note the Money Advice Service's comment about 'not hiding your unhealthy lifestyle' in order to maximize the annuity rate. If that's the case, why doesn't everyone claim to have an unhealthy lifestyle ? What do they do, ask you to send your empty fag packets in as proof ?

No - blood sample which gives an indication of how long you've been a smoker/consumption of cigarettes. Other supporting medical evidence will be required from (say) your GP in respect of weight, blood pressure etc.

Dox

Micklosh wrote: »

Hi
I have a sum which I wish to use to buy purchase an pension anuity. What are the best ways to go about this please

Not clear if this 'sum' results from some sort of savings other than a pension scheme - please could you clarify?

You can buy (non pension) annuities with your own cash, and they receive favourable tax treatment because part of each payment is deemed to be a return of your capital, so isn't taxed.

xylophone

Do you mean that you wish to use your pension fund to buy an annuity?

Or do you mean that you have savings that you wish to use for a purchased life annuity?

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/purchase-life-annuity/