About Annuities
Annuities have been around for centuries and provide the core of retirement solutions in the UK. They are a type of insurance policy that provides a regular, guaranteed income for life, in exchange for a lump sum – your pension savings.
For the majority of people reaching retirement, a conventional annuity remains the first choice to provide a pension income, but it is important to realise that conventional annuities are not the only way of turning your pension savings into an income.
The decisions that you make at retirement could determine the income that you will receive for the rest of your life, so it is important to explore all available options, to ensure that you end up with the solution that is most suitable for your circumstances, both at retirement and in the future.
You have the right to buy your annuity with a different provider from the one, or ones, with whom you saved your pension fund. This is important, as regardless of how well your existing pension provider has performed before you take benefits, they may not be the best for you at retirement.
The Annuity Bureau is able to help identify the most suitable options for your individual circumstances and can help you every step of the way; from the initial research and quotes stage, through to purchasing the right Annuity.
Your attitude to risk
Your attitude to risk is one of the most important elements in deciding how to take benefits from your accumulated pension funds. If you are considering the use of something other than a conventional annuity to provide you with an income in retirement, it is essential that your attitude to investment risk is assessed. This will confirm whether you are prepared to accept future fluctuations in your income and the value of your funds. It is also the key to determining how your pension funds are invested.
Attitude to risk has traditionally been expressed in terms such as cautious, balanced or speculative, however we apply a more rigorous approach to determining your personal attitude to risk. By discussing topics such as:
- Short-term fluctuations in your investments
- Inflation
- Returns against inflation
- Timescales for investment
Please call us on 0845 850 8550 to speak to one of our Consultants.