Immediate Needs Annuities | Care Home Fees Annuity | Purchased Life Annuity

If you are responsible for meeting your own care costs or those of a loved one then, depending on your circumstances, there are four main options available to you:

1) The local authority

Support is available from the local authority and we can help you understand what you may claim or qualify for. We will also make sure that you are claiming all available state benefits available.

2) Sell or Rent Property to produce income.

If you own a home or the person you are helping owns a home then you can sell the property or you can rent it out to produce an income. There are obviously risks in renting a property so we can give you guidance on the best way to approach this.

3) Buy an Immediate Needs annuity or Care Home Fees Annuity.

if you have a lump sum then you could purchase an immediate needs annuity, sometimes referred to as care home fees annuity. In return for a lump sum payment, an annuity provider guarantees to pay a monthly income for the life of the person requiring care. We can research the whole annuity market for you and ensure that you receive the best terms possible.

4) Invest to produce an income.

We will look at the investment options available to you in order to produce an income to help meet the care fees.

Next Steps

We have qualified care home fees advisers that are independent of any provider and will give the best recommendations to assist you.

When we have collated all of the information that we need, we will prepare and send a full report to you, which will form the basis of our further discussions with you prior to eventual recommendations.

Kevin Stelfox, Sales Director. “We encourage anyone entering into care to contact us for impartial guidance.”


Best Annuity Rates

There is a lot of confusion and panic once you reach retirement, a lot of organising to do to help you have that smooth transition into retirement. So the last thing you need to worry about at this time is how do you get the best annuity rates from your pension.

Why use our best annuity rates service

Once you reach retirement you need to switch your pension fund to an annuity, you may have had this pension for many years and now it is time to find the best annuity rates. The best place to start is the open market, everyone in the uk has the right to shop around on the open market to find the best annuity rates.

Do You Qualify For Enhanced Annuity Rates

But, where do you start. Well usually the best place to start is an independent annuity specialist. Most of the firms in the uk that specialise in annuities have there own annuity desks. These desks are manned by consutants that normall have many years experience in the annuity market. They will search the entire market to find the best annuity rates for your individual circumstances.

The open market option was introduced so everyone had the right to shop around, there can be significant differences between the best and worst annuity rates from the pension providers.

About Annuity Contracts And How To Get Them

You would have no trouble finding annuity contracts because there is no shortage of them anywhere, and would have easy access to them with today’s technology and connections. But keep in mind that, even though finding them is easy, deciding which annuity contract to sign up for is what is difficult.

There are so many things you need to take into consideration before making an annuity purchase: the complicated jargon that comes with the contract, the factors that affect how much payment you would get, and maybe other arrangements that you need to sort out. Though how complicated and difficult choosing an annuity contract, all you need is a bit of patience and a lot of research and critical thinking to decide which contract to get.

The first thing you could do is to do a background check on the company that you are interested in taking a contract with, and see from their past dealings with their clients if their services are indeed trustworthy enough for your need. Browse among their contract and find one with the best annuity rates that would suit your situation. And while negotiating with the issuing agent with the contract, make sure to ask the right questions and clear some of the parts of the contract so you would better understand it.

Choosing an annuity contract maybe difficult, but it is in no way impossible. Just make your effort to choose the best annuity for you so you could enjoy your retirement years.

The Advantage Of Having Annuity

An annuity contract would do you some good during your retirement years, especially since you would not be able to work again for income. So it is best that you sign up for one to make your financial situation a little better during that time.

With an annuity contract, you would be able to have a regular source of income on a weekly, monthly, bimonthly, or quarterly basis according to how regular you want to receive them. Its rates are determined by your age, gender, and lifestyle. And you would be allowed to have some kind of arrangement to sort out, such as letting your family members receive the rest of the pension annuities amount when you are gone. And this service guarantees that you would be paid for as long as you are still alive and well.

But choosing annuities could get difficult, with its complicated language and conditions that you need the help of a consultant and of a pension annuities calculator to help you understand. And keep in mind that once you choose an annuity contract to sign up for, you would not be able to change it so you need to choose wisely.

Just make sure you make an informed decision by doing a thorough search and research before making an annuity purchase. If you do, you would be able to enjoy your retirement years to do what you want to do without making additional expenses.

Pension Annuities – Your Choice For A Bright Future

Retirement is an expected phase of our life. Each one of us is responsible for the security and planning of our future. Annuity is the best option which can protect you and your assets from unforseen problems.

Annuity is a long term retirement option. It is also termed as an agreement between you and the insurance company. You are required to pay regularly into the retirement funds which can be reimbursed after your retirement. The amount you pay into your retirement funds are tax exempted till the maturity.

Pension annuities can be paid either in a lump sum or in installments over a period of time.

Annuities add more worth to your exeisting retiirement plans and can extend further benefits such as

  • Get death cover for self and other beneficieries
  • Expand your investments
  • Prevents your assets from getting outlived
  • Saves your taxes on a long term
  • Avail regular income even after retirement till death.

When you purchase an Annuity you are bound to give up your pension funds forever by bartering it for a standard income. You can avoid this by adopting a third way annuity plan which lets you get regular income until the age of 75 and allows you to purchase another annuity. However before buying any such product take the help of an IFA.

Annuity rules change in April so people over the age of 50 need to act now

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

The minimum retirement age is increasing to 55

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.

Enhanced Annuities – Do You Qualify?

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

Annuity Value Protection

Value Protection addresses head-on the concerns of those who believe an annuity could represent poor value if they were to die relatively young.  It effectively creates a ‘win-win’ situation, because even if you don’t make it to age 75, you will at least be assured that either you or your dependants will have benefitted significantly from the pension fund accrued.

How Value Protection Works

A lump sum may become payable from your annuity in the event that you die before reaching age 75.

The maximum lump sum payable under Value Protection is the initial annuity purchase price, less the sum of the income paid from the annuity.  Any Value Protection lump sum payable will be taxed at source at a rate of 35%.

Please note that the Value Protection option must be selected when you purchase your annuity – it cannot be added later.

A dependant’s annuity may also be paid.  In this case, any Value Protection lump sum will be paid on the 2nd death, and will take into account the total amount of income paid to both the annuitant and the dependant.

The Value Protection options

Full Value Protection

Full Value Protection gives you the opportunity of providing a lump sum for your beneficiaries, if you die before reaching age 75, equal to the initial annuity purchase price, less the total amount of income paid.  If you die after reaching age 75, no lump sum will be payable.

Partial Value Protection

Partial Value Protection operates in a similar manner to full Value Protection.

However, instead of protecting the full value of the initial annuity purchase price, you may select to protect a proportion of it. In this case, the lump sum payable will be the proportion of the initial annuity purchase price protected, less the total amount of income paid.

Other options available:

Lump sum/Income Guarantee

This option operates in a similar manner to Value Protection.  However, if you die before age 75, but still within the selected guarantee period, the remaining payments due under the guarantee will be payable as a lump sum. If you die after age 75, no lump sum will become payable, but income will continue until the end of the guarantee period.  Please note that if you choose this option, you cannot have Value Protection as well.

Dependant’s annuity

Choosing a dependant’s annuity ensures that an income will continue to be paid to your dependant (s), should you die before them.

If a dependant’s annuity has been selected with Value Protection, a lump sum will only become payable on the 2nd death, and will take into account the aggregate income paid to both you and your dependant. The lump sum only becomes payable if you die before reaching age 75, although the age at which the dependant dies does not affect the eligibility for a lump sum payment.

Who would benefit from Value Protection?

This annuity option may benefit you if:

  • You are concerned about losing out of your pension fund in the event of early death, particularly if you are in ill health
  • You are more interested in lump sum death benefits than an income
  • You want a guaranteed income stream and the reassurance of a lump sum death benefit if you die before age 75
  • 35% tax on lump sum death benefits may represent an income tax or inheritance tax saving for your family

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