Compare prices annuity options using the Open Market
Annuities are something you buy when you reach retirement age. When you retire, you must use the fund you have accumulated during your working life and the savings you can help buy your pension. The pension can receive an income for the rest of your life, which allows the pensioner to cope financially when they have finished the job.
An annuity gives therefore a safe return and will continue to be paid for as long as you live. Some end up paying when you die, but in some annuities, you may decide that the money you would have been paid is transferred to your partner. This is known as a joint life annuity.
When you reach retirement age, you need to start looking for the best annuity rates. The pension provider, the company must pay into a pension, perhaps the first option annuity. However, you should be careful not to accept the first offer that a study has shown that it is possible to obtain a better annuity rates of interest to look around, this is called "Open Market Option '.
Annuity rates are offered will depend on a variety of aspects. First, the amount of pension that have developed a lump sum is a key factor. At the age of retirement has the right to bear 25% of the pension lump sum tax free cash sum, provided that there is no need to put it into any other pension. If you decide to do this, the rest of your pension fund is less, of course, that will affect your annuity rates.
Your rental rate will also depend on the retirement age and how long the company expects you to live. For example, if you retire at age 70, the company estimates that revenues will pay for fewer years than if you retire at age 60. This means it is likely to offer the highest level of income.
Their calculations are of course based on risk and no problems prompted the company to help calculate this. For example, they also need to know if there are problems in your medical history, such as cancer or heart problems. His work experience and location will also have an effect on annuity rates is likely to be offered.