Best Annuity Rates News

When obtaining quotes for annuities you need to consider whether or not you make qualify for any enhancements to the annuity rates that would be available for your age.

Smoker enhanced annuity rates are available for those who smoke at least ten cigarettes a day (or 85 grams of rolling tobacco per week) and have done so for at least the last ten years this has an effect on their life expectancy. We take this into account to give them a bigger annuity.

We believe in giving people the full benefit of their pension fund, taking account of their personal circumstances.

The providers we use carry out spot checks and in some cases obtain doctors’ reports to verify the smoking information provided in the application. If they find evidence that does not support the information the client has supplied and they are not eligible for smoker annuity rates their pension will be reduced. The reduction will be significant and the pension will be less than could have been received from another company. They may also recover any overpayments.

Other enhancements may apply for smokers and it is always best to consult with an annuity specialist to ensure that you get the best annuity rates possible. Remember once you have bought your annuity it cannot be changed.

For the Best Annuity Rates contact Retirement Solutions on 0800 043 6701

Value Protection (sometimes known as annuity protection or capital protection) is an option that returns a lump sum if the annuitant dies before their 75th birthday, giving the ability to protect a percentage of the pension fund, right up to 100%.

The lump sum payable on death is the percentage of the pension fund that is protected, less the total gross income already paid to the annuitant(s) as an income. The lump sum, if paid, will be taxed, currently at the rate of 35%.

Points to Consider

• Provides a return of money to the client’s nominated beneficiary should death occur before age 75.
• Protect up to 100% of your pension fund.
• Available on a single or joint life basis
• Dying after age 75 will result in no lump sum being paid.
• Any lump sum will be taxed at 35% before it is released to the nominated beneficiary and is not normally counted as part of the estate for inheritance tax purposes

For Annuity Advice and Comparisons call 0800 043 6701

Visit our website to use the annuity calculator

LV= has entered the fixed-term annuity market with the launch of its Protected Retirement Plan.

The product has been designed for retirees who want a secure fixed income for a limited time, before making a decision on their lifetime retirement income options, LV= says.

The Protected Retirement Plan (PRP) offers fixed terms of between three and 25 years, falling to 20 years after 6 April 2010.

Retirees will receive a fixed income, subject to GAD limits, with a guaranteed maturity value, which they can then re-invest in a lifetime annuity at a later date. Income options are flexible and the plan uses unsecured pension rules to offer flexibility for investors.

LV= has also launched a trustee investment plan, which combines the PRP’s guarantees with the investment options available in a SIPP.

The product suits healthy lives that may become enhanced at a later date. In simple terms you buy a fixed term annuity with a guaranteed maturity fund and a fixed term. At the end of the fixed term you can then either annuitise fully or purchased another fixed term annuity.

The current UK Pension Regulations change in April 2010 and the age that you can take annuity benefits will increase to age 55 from the current age 50. It is therefore very important for all those pension savers under age 55 to act quickly to unlock billions of pounds of tax-free cash from their retirement pots – or wait years before they get another chance.

The amount of tax free cash that can be taken from a pension fund before an annuity has to be purchased is 25% of the fund value. This money can come in very handy to pay off a mortgage, or provide university fees for your children.

It is usually a good idea to speak with a pension annuity specialist to get independent financial advice. They will search the open market to find you the best annuity rates. Your existing pension provider does not necessarily provide the best rates and you can shop around to get better annuity quotes.

If you do not have your own adviser you can call annuity specialist Retirement Solutions on 0800 043 6701

Life expectancy has increased considerably over this century therefore once you reach retirement in is important to get the best annuity rates from your pension pot, this is because the income from your annuity will probably have to last you on average over 10 years.

The majority of annuities in the UK are provided by the big Insurance Companies such as Prudential, Aviva, Standard Life, AXA and Legal and General to name a few. They all have different annuity rates for different ages, sex and postcode. Because of this it is very important to shop around a few months before you retire. There was a recent article that was published in America that stated that the British spend more time on Christmas shopping than they do on shopping for the best annuity rates.

Shopping around for your annuity is not that difficult and generally perhaps the best way is to consult the advice of an indpendent financial adviser, he or she will then research the whole of the market including some of the annuity providers you probably have not heard of. If you can it is perhaps also better to find a firm of  independent financial advisers that specialise in annuities. There are many such firms an just typing “annuity rates” into Google should bring up a reasonable list of specialist firms.

It is also important to ensure that you check to see if you may qualify for enhanced annuities as these can give a significant increase to your annuity income.

Annuity Supermarket recommends a specialist annuity independent adviser Retirement Solutions and you can reach them on 0800 043 6701

If you are retiring soon and you have recieved your wake up pack from your pension provider telling you what benefits the pension will provide for you, I guess you now need to find some annuity quotes from the open market.

Yes! you can buy your annuity from your current pension provider but you will probably find that if you go to the open market and look for the best annuity rates that you will get a much better rate. It can be a quite daunting experience going to every annuity provider and asking them for annuity quotes. Perhaps the best suggestion is to go and visit an annuity supermarket and ask them to provide annuity quotes.

Annuity Supermarkets will generally be whole of market, however, some only use a panel of annuity providers, this is because they will get enhanced commission rates by selecting a small panel. Make sure you choose an independent whole of market annuity intermediary to provide your annuity quotes.

Also make sure that the intermediary you choose asks questions about your lifestyle and health, this is because in many instances you can qualify for enhanced annuities. Generally enhanced annuities will pay around 20 to 40% more income, this is because you are likely to have life expectancy that is lower than the average.

If you want to get annuity quotes from a specialist independent whole of market annuity intermediary then go to annuitysupermarket.com or call 0800 043 07125.

Since the legislative changes to pensions at A-day, there are now many more opportunities open to today’s investor. One of the features of the new regime is that very little is banned. The approach taken by the legislation is to impose tax consequences on some transactions and leave the choice of the investment to the investor.

The rules are generally more flexible and accommodating than they used to be, the new regime offers several new opportunities to invest in a wide range of assets and exciting investment opportunities.

If HM Revenue & Customs allow it, so do we.

Annuity Supermarket will strive to get you the best annuity rates from the Open Market.

It is our policy not to impose Company rules on top of Revenue rules. As a result we can proudly claim ‘No other SIPP advisers allows more’.
Examples of some of the investments members have taken out can be found here:

Investments

Commercial Property

Land

Deposit Accounts

Cash

Stock Exchange listed companies (listed on a HMRC or FSA recognised stock exchange)

AIM and OFEX Companies

Unit Trusts and OEICS (listed on a HMRC or FSA recognised stock exchange)

Government Securities

Fixed Interest Securities

Quoted Debentures and loan stocks

Shares in unquoted private companies

Offshore funds

Real Estate Investment Trusts (REITS)

Offshore funds

Hedge Funds

Insurance Company managed funds and unit linked funds

Second Hand Endowment Policies

Companies on an overseas exchange recognised by H M Revenue & Customs

Traded futures and options (relating to stocks and shares on a recognised exchange)

Contracts for Differences (CFD)

Notes

The member is responsible in conjunction with their Financial Adviser for choosing investments that are suitable for their individual circumstances.

If any transaction is to be carried out between the Registered Pension Scheme and the policyholder or any person connected with the policyholder, the transaction must take place at market value.

On 6 April 2010 the minimum age at which pension scheme members will be able to access their pension benefits will jump from 50 to 55.

Mr Rogers has reached normal retirement age and is a member of his employer’s group pension scheme.

We were asked to provide quotations for an annuity bought under the Open Market Option. We quickly identified that Mr Rogers had medical conditions that might enable him to qualify for  Enhanced  Annuities (he had diabetes and bronchitis).

We initially obtained a standard rate illustration but after establishing further facts concerning his medical background, we were able to secure an uplift to his pension of 22% above the standard rates, by negotiating with several specialist annuity rate providers.

Based on standard rates, Mr Rogers pension fund (£30,800) would purchase an annual income of £2,323. Based on enhanced rates for impaired health, Mr Rogers fund eventually secured an income of £2,830, which equates to an additional £507 per annum.

Examples of some of the conditions that may qualify

• cancer
• heart conditions
• diabetes
• asthma
• obesity
• high blood pressure
• organ transplants
• stroke
• liver disease
• alzheimer’s
• chronic lung disease
• kidney disease
• multiple sclerosis
• Parkinson’s Disease
• or a disease of the central nervous system.

For advice on annuities call 0800 043 0725