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What options are available if I decide to take an Annuity?

At My Pension Expert we base our service on four pension/ annuity options at retirement. Providing an annuity comparison service. These options are:

Option A: Invested Annuity. This works by anticipating a growth rate of the investment fund at the outset of the plan. It offers you a retirement income based on this. During the plan this growth will be reviewed and a bonus rate calculated. If it achieves its growth rate, the income you draw as a regular payment may go up – but if it falls short the income can go down.

For more information on invested annuity click here.

Option B: Lifetime Annuity. For many people, Option B will give the best outcome. It’s a regular lifelong income that’s fixed at the outset, based on the size of your pension fund and your personal circumstances like age and medical history.

For more information on lifetime annuity click here.

Option C: Fixed Term Annuity. Our Option C shares the low risk of a Lifetime Annuity and adds some other choices. It’s a set amount, but you choose how long to receive it for. When the term ends, you’re free to use the Guaranteed Maturity Amount – the size of your pension fund at the end of the term – to take up another option.*

For more information on fixed term annuity click here.

Option D: Flexi-Access Drawdown. Flexi-Access Drawdown or Flexible Drawdown is the new industry name for Income Drawdown, letting you withdraw a lump sum from your pension fund. While up to 25% can be taken tax free, other amounts may incur tax liabilities. In addition, it of course reduces the size of your pension fund and could remove all of your funds—this is known as ‘diminishing funds’.

For more information on flexi-access drawdown click here.

Guarantee Period

A guarantee period can be added to an annuity as a way of continuing the Pension Income for loved ones should you pass away early in the plan. They can be anything from 1 to 30 years and whilst they can affect your level of income it is not always by as much as you might imagine. So it’s always worth comparing quotes and discussing fully with your Independent Financial Adviser.

What is impairment?

Conditions like heart disease and cancer are tragic. If you have suffered from one, providers will often increase your income to make up for your reduced life expectancy. So make sure you tell us about your medical history – over 1,000 conditions count.

What is enhancement?

Smoker? Drinker? Few extra pounds? These factors may affect your life expectancy – and because of it your pension income could increase. This is where accurate information can mean a significant increase in the level of payments made by the provider. So be honest about your indulgences – they add up!

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