The sale of enhanced annuities has again increased and now make up a third of all annuities sold. These enhanced annuities are bought by retirees that take the trouble to shop around and use the right to the ‘open market option‘.

According to Towers Watson, consumer interest in taking out enhanced annuities – which provide bigger pensions for those with serious medical conditions or with negative lifestyle factors such as weight, smoking and occupation – is set to continue. Enhanced annuities, also known as impaired life annuities, make up over a third of all annuities sold (by premium volume) in the open market in the UK.

These enhanced annuities can quite often get up to 40% plus for those that do take the time to see an independent financial adviser and complete a medical information questionaire. There is a real apathy overall in the retirement options sector with most retirees just accepting the quote from their pension provider. Industry figures say two thirds do not bother to shop around and are therefore missing out on these enhanced annuity rates.

Adam Benson, Independent Financial Adviser at annuity specialist Retirement Solutions said, “I have seen significant increases to retirement income of the clients that have come to me exercising their open market option, as IFAs we know the right questions to ask and can often get 30 to 40% increases in the rates they were offered by the pension provider they saved with. In my opinion not enough people are using the open market option and are therefore missing out on enhanced annuities.”

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Latest Best Annuity Rates September 2010

by admin on August 31, 2010

As we move into another new month what can we expect for the latest annuity rates for September 2010? Many industry experts are saying there will be further cuts in annuity rates from the providers in the coming months.

Have the best annuity rates September 2010 got any hope of increasing?

It seems unlikely that the best annuity rates September 2010 have any hope of increasing. Therefore it makes shopping around for the latest rates even more important.

The average rate for a male aged 65 purchasing a level without guarantee annuity (based on a £10K purchase price) has decreased by 6.3% since last August, whilst the equivalent female annuity has seen a 5.6% reduction over the past year.

The latest reductions mean that the average male annuity rate has dropped by a massive 45.5% over the last 15 years, whilst female rates haven fallen by 41.8%.
Source; www.moneyfacts.co.uk

Latest Best Annuity Rates September 2010What can you do to combat the drop in annuity rates in September 2010

We asked independent financial adviser Adam Benson what retirees can do to combat the drop in annuity rates during September 2010, Adam said, “My very simple piece of advice for those approaching retirement in September is to not accept the first quote given to them by their pension company. Everyone has the right to use the ‘open market option’ which gives you the right to take your pension to another provider to buy your annuity.”

Adam also pointed out that only an independent financial adviser can get you the best annuity rates September 2010 because they have access to the entire market. We at annuitysupermarket.com have to agree with Adam and seeking advice can give you a significant boost in retirement income.

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Retirement Calculator

August 29, 2010

A retirement calculator can help you find the best annuity rates using your open market option. Using a retirement calculator takes your pension fund and returns the amount of annuity income that the fund would produce if you retired.
The age you retire affects the calculations because as you would expect the payments from a retirement [...]

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Asset Backed Annuities

August 28, 2010

Asset backed annuities are being launched by most of the major annuity providers because of the solvency requirements for guaranteed annuities. Asset backed annuities currently account for around 5% of all annuity sales.
Why would you have an asset backed annuity
With an asset backed annuity there is potential for income increases if the assets backing the income increase in value. [...]

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Fixed Annuity Rates

August 23, 2010

When looking for fixed annuity rates you need to consider a few things before you rush in and buy an annuity from your insurance company. Around 40% of retirees qualify for Fixed annuity rates with enhancements for lifestyle or medical conditions.

40% qualify for enhanced fixed annuity rates
Industry figures show that around 40% of retirees could [...]

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Where to get retirement quotes

August 22, 2010

I know the feeling, a large envelope from your pension provider full of retirement quotes has just dropped through the letterbox, you didn’t realise it but its only six months to retirement. The pack is full of all the information you need to vest your pension.
But, before you rush to fill in all the forms and send [...]

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Index Linked Annuity Rates

August 21, 2010

Rising infaltion erodes the value of any fixed interest annuity therefore you should consider purchasing index linked annuity rates from the open market. Index linked annuity rates mean your retirement income will keep pace with inflation and retain its buying power.
Where do you get index linked annuities?
Nearly all annuity providers will offer you an index [...]

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Guaranteed Annuity Rates (GAR)

August 20, 2010

Many pension products, especially some of the older contracts such as section 226 retirement annuity contracts have built in guaranteed annuity rates (GAR). A guaranteed annuity rate, GAR for short, is a fixed annuity rate, written into your pension contract, at which you can convert your pension fund, irrespective of what open market annuity rates [...]

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Annuity Rates: What is the Forecast for 2010

August 18, 2010

At annuitysupermarket.com we like to keep you updated on the latest information on annuities and annuity rates. We are firm believers that everyone should shop around on the open market to find the very best annuity rates.
The Retirement Partnership managing director Steve Lewis offers a commentary on the latest annuity rates.
Since our last annuity update, annuity rates have continued [...]

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Enhanced or Impaired annuity what is the difference?

August 16, 2010

An enhanced, or impaired, annuity will pay a higher income to people with health problems or where their lifestyle is likely to reduce their life expectancy. Here at annuitysupermarket.com we are always striving to get the best annuity rates for our clients. One question we are always being asked is, “What is the difference between an [...]

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