Annuity Rates 2011

Are you approaching retirement in 2011 or 2012. If so, you need to start looking at annuity rates 2011 so that you can make an informed choice.

An annuity will provide taxable regular income for the rest of your life, all dependent on annuity rates 2011 if you retire this year. Taking out an annuity is therefore the most important retirement choice you will have to make. It’s vital to shop around and see which will be the best type of annuity for you.

Annuity rates are constantly changing but at the Annuity Supermarket we keep an eye on trends and will be happy to discuss your options with you at any time. In order to give you some idea of what’s on offer, why not use our annuities calculator so that we can get information on annuity rates 2011 to show you what monthly income you can look forward to when you retire.

FAQs about annuity rates 2011

What is an annuity?
An annuity is the pension income that you will receive once you have retired. The law states that you must take this decision before the age of 75. Your annuity will also provide you with a guaranteed pension income for the rest of your life.

As your retirement date approaches your pension provider will contact you to let you know that it’s possible to take a lump sum of 25% as a tax-free amount from the total value of your pension fund, if you wish. Then the balance that remains is available to invest into an annuity.

You have the freedom to choose whichever type annuity is best suited for you and you can also choose which pension provider will give you the best deal.

What are enhanced annuity rates?
If you can answer Yes to the following questions you may qualify for enhanced annuity rates:

• Do you smoke 10 cigarettes or more each day and have done continuously for 10 years or more?
• Are you currently taking any medication to treat a chronic (long-lasting) illness?
• Have you ever been taken into hospital for any medical condition?

If you are suffering from a health condition which might lead to a shorter life enhanced annuities, offered by specialist annuity providers, provide an income boost. They can pay an income that is up to 40% higher than a standard annuity. Even higher enhanced annuity rates can be gained for those with more serious health problems. These can sometimes pay an income of over 60% higher than that paid by a standard annuity.

Using an annuity calculator will help you easily find the best enhanced annuity rates 2011.

Does getting an annuity quote mean having a medical?
Yes, in order to qualify for enhanced annuity rates your annuity provider will ask that you have a medical and may also ask to consult your GP or hospital consultant for more information.

What is the open market option and how is it relevant to an annuity?

Many people assume that they have to buy their annuities from the company that has held their pension. This is not the case; you have the right to shop around for the best annuity rates when you retire. This is called the Open Market Option and it applies to everyone

Figures from the Association of British Insurers (ABI) show that 61 % of people who bought annuities in 2007 did not shop around in this way so are likely to have lost out. We can search out the best annuity rates 2011 for your retirement income. To start the process off, simply fill in our annuity calculator.

What are purchased life annuities?
Purchased life annuities are bought from your own funds or investments and they act as ‘topups’ to annuities you have bought into using money from your pension fund.

Major tax advantages make purchased life annuities very attractive to those with a substantial lump sum to invest and who want to convert it into a regular, guaranteed annuity income. You can use our purchased life annuity calculator to find the best purchased life annuities.

To get the best annuity rates 2011 using your open market option complete our online form and we will send your annuity quotes.

What’s the difference between a pension annuity and a retirement annuity?

Most people think that their pension annuity starts paying out automatically when they retire, but that is not how it works. It might sound confusing, but the retirement annuity is the same thing as a pension annuity.

Your retirement income or retirement annuity is paid from the pension fund that you have built up over the years. The government says you must use three quarters of this fund to buy a pension annuity that will provide you with an income in retirement. This retirement annuity can be structured to suit your own particular circumstances and you could use an annuity calculator to find the best annuity rates 2011.

Which annuity providers does annuity supermarket use?
All our annuity quotes are sourced from all the providers in the market, and we include all the pension annuity providers who can quote and provide the options you require. We use established companies with an excellent track record, including Prudential, Aviva, Legal and General, Standard Life, AXA, Aegeon and Canada Life.

For enhanced annuities we use specialist providers such as Just Retirement, Partnership and MGM Advantage. With our advice you can choose the best annuity products to ensure a happy and prosperous retirement.

1 Just Retirement and the Exchange, 22/07/2009