Shopping Around to Get the Best Deal

Boosting your Retirement Income

Effective retirement planning requires an expert knowledge of the detail of pension legislation and an abilty to clearly understand a client's individual long-term objectives and expectations. We offer both.

Boosting Your Retirement Income

Shopping Around to Get the Best Deal

 

When you decide to take benefits from your pension savings, you are not obliged to purchase an annuity and take your retirement income from the company that you hold your pension fund with.

An ‘Open Market Option' enables you to transfer your accumulated pension fund to another insurance company, which allows you to shop around to get the best deal. Utilising the ‘open market option' could mean that you are able to find a better annuity rate and, therefore, secure more income during your retirement.

Annuity rates can vary considerably between providers. Even with one provider, the rates can differ according to the annuity option chosen. You have to remember that purchasing an annuity is a one-off decision, so it should be made very carefully and only after taking professional advice, once you have purchased an annuity you cannot then move to another provider.

In addition, your current pension provider many not be able to offer you the type of retirement income or retirement product you require. For example, not all insurance companies have income drawdown products or may impose fund size restrictions above your fund value.

You don't have to purchase an annuity at age 75 in the current market. Another option, for those willing to look at investment risk, is to purchase an ‘Alternatively Secured Pension' (ASP). This is an alternative to an annuity purchase and is only available to those aged 75 and over.

 

For more information about the services we offer, please contact us.