Pension Annuity

Pension Annuity Rates

We all want to get the most from our retirement and an important part of that is making sure that your pension annuity provides you with the maximum monthly income that your circumstances allow.

The annuities calculator by Annuities Supermarket helps you obtain the best pension annuity rates for you. Setting up a pension annuity is not complicated the range of different pension annuity products available on the market can be confusing.

Why shop around for a pension annuity?

A 2010 report produced by the Financial Services Authority showed that there was a 22% difference between the rates of the eight top pension annuity providers. Other reports have found that the pension annuity rates offered between the different pension annuity providers can vary by as much as 40%.

According to some survey research done in 2007 by the Association of British Insurers (ABI), two thirds of people buying into a pension annuity went with their pension company. What’s particularly worrying is that most of them may not have realised they had the option to shop around. In an age when we all shop around for house insurance, pet insurance, buildings insurance and car insurance, why not do the same for your pension annuity?

The pension annuity rates you sign up for at retirement last you the rest of your life, after all.

Your choice of pension annuity

Remember, that you do have the choice of pension annuity provider because of the open market option. As you are making a decision that will affect the income that will support you in a fulfilled and active retirement, it is vital that you do shop around for the best pension annuity you can get. Don’t just take the first pension annuity offered by the insurance company that has your pension.

The easiest way to start looking for better pension annuity rates is to use our personalised annuities calculator. We will then find information on pension annuities from a range of providers to enable you to make the right decision. The annuity calculator is easy to use but it’s not an automated calculator; we use your details to obtain pension annuity rate quotes from the leading annuity providers in the UK.

What is the open market option?

The UK government introduced a law in 1975 that says that when you reach retirement age you can choose what type of pension annuity you think will best suit your needs. The law also states that it is up to you to decide which pension annuity provider you want to select. This is the open market option.

It is important to remember that you do not have to stay with the same pension company once it is time to make arrangements for your retirement income through a pension annuity. However, something you need to bear in mind is that the law also states that once you have made your annuities choice you do have to stay with this choice.

Your decision on which pension annuity to choose is therefore a vital one and Annuities Supermarket is here to help you make it an informed one.