UK Annuity – What are the options at retirement?

Finally you think, I have reached retirement, but it is like starting work again for the very first time, you are the novice. First of all you have to fight your way through all the retirement papers you have been sent from your pension provider and what is a UK annuity? Many retirees are confused by the paperwork that arrives through the door from thier pension provider so they just sign the form and send it back.

What are these annuity forms telling you?

The forms that are sent to you set out your statement of benefits, first of all the amount of pension fund you have at the date the statement was produced (this can and does change) and the amount of annuity the provider is prepared to pay for your age and gender.

These benefit statements are prepared with a set criteria of options for the annuity, for example the provider has probably based them on a single life level annuity with no escalation in payment and perhaps a five year guarantee. Now that may suit the provider but does it suit you?

What annuity alternatives do I have?

First and foremost you do not have to buy your UK annuity from the pension provider. You have the right to shop around on the open market. Secondly you can buy the annuity shape that suits your requirements. There will be an additional form in your retirement pack for you to get an alternative annuity quote from your pension provider on the terms you require.

Visit our website for details of the options that you can choose from.