Tag Archives: Annuity Rates

Shake the Hand of the Annuity Provider Offering the Best Annuity Deals!

With annuity rates being depressingly low, those on the verge of investing in an annuity are facing a dilemma – wait for the rates to improve, or choose from one of the annuity deals available now and make the best of it. Keep waiting and hope that you get a better deal, or shake the hand of the annuity provider offering the best deal right now?

Annuity rates depend on a number of complex factors, and according to financial experts, the rates are not set to improve significantly, at least in the short term. However, there could be tiny fluctuations in the rates from time to time. But delaying investing in an annuity may mean that the lost income due to the delay may be far bigger than any gains from small fluctuations in rates.

Even though rates may be low at the moment, there are various types of annuities available on the market, and you can find a product that best suits your needs and offers an income that you are comfortable with. A financial advisor can guide you through all the types of annuities, as well as your own needs and make an informed choice.

Waiting for better annuity deals may prove to be a bad idea on three levels. One – it may mean that you lose out on regular income due to the delay, two – while you are waiting for annuity rates to improve, rates may go even lower, and three – any attractive deals and offers currently available could be withdrawn without any notice. Unnecessarily delaying investing in an annuity in the hopes of better annuity deals may therefore mean that you not only find a better deal but also make a loss in the process.

Popular financial products being withdrawn is not without precedence. The Halifax Retirement Home Plan is a good example of this. The Halifax Retirement Home Plan was a highly popular mortgage that was withdrawn without any notice in August 2011. This was the only flexible interest only equity release plan of its kind at the time and left a lot of people who were interested in it without any other option.

In fact, annuity rates, annuity deals and indeed annuity products can be withdrawn, updated or changed on a day to day basis. Waiting for rates to improve may mean that you not only have to commit at a lower rate in the future, but could also mean that you do not get the specific type of annuity that you wanted in the first place.

Annuity UK: All You Need to Know

There is so much information about annuity UK, that it can be difficult to find your way through all the facts to what is absolutely necessary. So here are the basics of annuity UK. An annuity is an exchange that you will have the choice to make when you reach retirement. About six months before you retire your current insurance company will send you information about their annuity rates and what your options will be. If you do decide to take out an annuity, you will then exchange the lump sum of your pension for an annuity. And that annuity will guarantee you an income for the rest of your life.

There are a few important things to remember here. You are under no obligation whatsoever to choose the annuity offered by your current insurer, and in fact you should absolutely look around at other annuity providers and find the best annuity UK rate that you can. You can also take up to 25% of your pension as a tax-free chunk which you can then do with what you like. Some people use it to pay off debts or the mortgage. It is also really important to remember that once you have bought an annuity, you cannot get that money back, which is why it is so important to do your research and find the best annuity UK rate and option for yourself.

When you buy an annuity, the annuity provider will use that money to buy gilts or bonds. These are like government IOU’s and are typically a low-risk investment. However, at the moment annuity UK rates are at an all-time low, and so the question of when to buy an annuity is also important. For most people waiting a few years for the market to stabilise is not an option because you will just be eating into your savings.

This is why it is vital to make the most out of whatever annuity UK you choose. It is also advisable to apply for an enhanced annuity. The majority of people miss out on this opportunity, but if you have health conditions, are a smoker, overweight, on prescription medication or any other physical illness or limitation you should apply for an enhanced annuity UK, because you will get a higher income each month. Take all of your options into consideration before making any decisions about which annuities to go for.

FSA Annuity Rates

The FSA, or Financial Services Authority is an independent body which is dedicated to regulating financial services industries in the United Kingdom. They are responsible for a number of different areas of regulatory practice, from investigations and rule-making to making sure those rules are enforced. Basically the FSA is around to make sure that financial services companies behave in a responsible and ethical way.

After the troubles of recent years, the importance of the FSA is all the more appreciated. While the FSA is responsible for a whole realm of financial services industries, it is responsible as part of this for keeping an eye on insurance companies and annuity providers. And they release FSA annuity rates on a regular basis, so that you can know what the baseline should be.

FSA annuity rates are an important part of keeping annuity providers honest, but FSA annuity rates are also a good tool for you to use to get an idea of what rates are available and how competitive they may or may not be. This is a huge advantage because there is an absolute wealth of information about various annuity providers and the rates that they offer. It can therefore be a bit difficult to find your way through all of the information.

However, with FSA annuity rates, you have an excellent and trustworthy guide to what you should be able to expect from your annuity provider. The FSA is working on your behalf. It was this organisation for example which enforced a ruling which permitted people to choose the annuity provider they wanted, rather than just sticking with the annuity offered by their current insurance company. It was also the FSA that made sure that insurance companies send you information about your options before you are due to retire.

It can be difficult in all of the jargon and all of the numeracy to find your way clear to a decent understanding of what annuities are and how they work. Without this understanding it is even more difficult to find an annuity rate that will help you get through the financial difficulties that retirement poses. This is why the FSA was set up, to help you make financial decisions, and to regulate the companies that you will have to turn to. So if you are looking into annuities and the rates seem a bit unreliable, the FSA has a breakdown of FSA annuity rates, which can definitely help you.

Choose an Annuity sooner rather than later!

Annuity rates have been low for quite some time now. Last year, in August, annuity rates reached record lows and have not recovered significantly since. In this economic climate, does it make sense for pensioners to delay investing in an annuity in the hopes of better annuity rates? Or does it make more sense to choose an annuity that best suits your needs at the moment and commit to it?

The fact is that annuity rates are constantly dropping, and although small fluctuations can occur, waiting for any significant improvement in annuity rates may mean that you lose out on better rates today. Experts have warned customers not to dither and wait for rates to go up, and to shop around for the best rates and choose an Annuity sooner rather than later.

There may be small fluctuations in annuity rates, but waiting for these small rises will only mean that you lose out on the income you could have received by investing in an annuity sooner. When compared to the level of rises that we have seen recently, waiting could mean you lose out on much more money than you gain from the increase in rates!

The key to making the best of the annuities available today is to shop around for the best deal and choose an annuity that best suits your needs. A surprisingly large number of people are not aware of their right to shop around on the open market and therefore simply accept the deal they get from their pension provider. Research shows that shopping around could mean getting up to a whopping 46% more income than you would with your existing pension provider.

There are several types of annuities available on the market – from investment linked annuities, level annuities, inflation linked annuities, to enhanced or impaired annuities. In case of couples you can also choose an annuity that guarantees income or a lump sum payment to the surviving partner – also known as joint annuities. You can have protection against early death by including an early death clause that guarantees payment to your beneficiaries.

There are many ways in which an annuity can be used to optimise your savings and make the best of them during retirement. The key is to choose an annuity sooner rather than later – at least in the short term – and to shop around for the best product that suits your circumstances and priorities.

Free Annuity Specialists Who Will Help Compare Annuity Rates

Annuity specialists and Independent Financial Advisors (IFA) can offer impartial and unbiased advice about the different annuities available on the open market. They can help you compare Annuity rates, compare different products, and understand the different types of annuities and choose a product that can best suit your individual circumstances and needs.

Professional independent financial advisors offer their services based on two types of payment – either an upfront fee, or a fee in the form of a commission. Upfront fee rates can range from £75 to £250 per hour depending on the location, type of advice etc. While an upfront fee is paid as a single upfront payment for the consultation and advice, a commission fee is paid only when you actually decide to buy an annuity through the advisor.

This means that you can receive free independent and impartial advice not just to compare annuity rates, but potentially until you need it, and until you have made a decision. The IFA is paid only when you buy a product through them. Irrespective of whether you agree to an upfront fee or a commission fee with your advisor, an independent financial advisor is qualified to offer completely unbiased and impartial advice and help you choose the most suitable product.

While an independent financial adviser can certainly help you compare annuity rates and find the best deal, there is yet another good reason to consult a financial adviser while choosing an annuity. Professional financial advisers often have access to exclusive deals and offers directly from the providers. These deals may not be available on the open market to customers, unless you buy the product through an adviser.

It is always a good idea to compare different advisers and choose one with the most experience and professional credibility in the field. Personal recommendations and references always help. But do not be afraid to shop around online, or locally too. Always make sure the independent financial adviser you choose is truly independent and not tied down to a particular company or companies.

If you are not sure if annuities are the right option for you and need independent advice about the best solutions for your circumstances, look for advisers with a broad field of expertise, rather than just an annuities expert. Unlike a specialist within a narrow area, a financial adviser with knowledge of the entire sector could help you explore more options and make the best decision.

Whether you need to compare annuity rates or simply need some friendly yet professional advice about your finances – an independent financial advisor could help you.

How Best to Compare Annuity Rates?

Once you reach the age of 55 you will begin to think about how best to make your retirement savings last for as long as you will need them. This is a difficult proposition, and there are many options that are available to you. About six months before you retire you will be sent an information package by your current insurance company. In this package will be information about the annuities that they have to offer. However, it is in your best interests to compare annuity rates.

If you are even considering taking out an annuity then the worst thing you can do is take the first annuity offer that you get; you absolutely have to compare annuity rates. The first reason is that once you have bought an annuity you cannot get your money back, and the second reason is that if you are going to try to take care of yourself financially for as long as possible you will have to find the best annuity rate to get you through the rest of your life. This is why you have to compare annuity rates.

But what is the best way to compare annuity rates? A good place to start is with annuity calculators. Most annuity providers have these on their websites and with a bit of personal information they can give you an idea of the kind of annuity rate that you can expect from them. These quotes are not guarantees, only a guide. So the next step to compare the best annuity rates is to get an actual quote from the annuity provider. There is also another way to compare annuity rates and that is to go to independent annuity observers like the FSA and have a look at their rates.

By deciding to compare annuity rates in this way you will have an idea of all the annuity rates that are available and what the various annuity providers have on offer. Each annuity provider will have something slightly different to offer and slightly different annuity rates and of course you will want and need the best annuity rate, and annuity package that you can find. Shopping around and making the effort to compare annuity rates is not a waste of time, it is preparing for your future. So take the time and go through the various steps until you find an annuity rate that works best for you.