Help to show you how you could boost your pension income

Help to show you how you could boost your pension income

One thing to consider is what you must do about your retirement finances, such as securing the most suitable best annuity rates.

But standing still and doing nothing is something you should avoid at all costs as it could mean you end up poorer in retirement. The main goal first is to ascertain what is on offer from your current pension provider. Once you have done this you can then work out which direction you want to head in next.

You will have plenty of choices when it comes deciding about who speak to about your pension annuity. In broad terms you have the option to consult with the following.... IFA (Independent Financial Advisors), annuity companies and financial specialists. As to which one you choose, well that will all depend on.... the volume of money in your pension pot and whether you need paid for advice. Generally speaking, people with smaller funds tend not to feel like they should consult with an IFA as their fund is not worth the fees.

If you are not sure about who to talk to then consider the point that a company who brokers annuities can offer advice that doesn't cost a bean. This is due to the fact that they take a cut from the provider of the annuity when you sign on the dotted line. So when you hire the services of an IFA you may also find you are in effect paying twice because of these commissions. A further thing to be aware of is that some but not all IFA's fail to compare the open market properly.

You now could be secretly saying to yourself.... why must I contrast annuity offers to get the best rates? Well, the answer is very, very simple... if you refuse to contrasts annuity offers you could well endure a smaller retirement income. The total amount of income you could be losing could be to the tune of 45% or more. Hardly surprising then that many people rue the fact that they didn't compare annuity companies for the best deal.

The primary reason why pensioners miss a much bigger income is that they were not offered what is known as an enhanced annuity. Annuity enhancement is presented to those who have an illness which bears an impact on how long they are likely to live. A typical habit which would qualify one for a better annuity would be heavy drinking and also regular smoking of tobacco. The kind of medical conditions could include... Heart attack, diabetes and Alzheimers.

A lot of people wrongly assume that they have to buy their pension annuity from the company with which they have been building up their pension with. This is not true, in fact you can buy your pension from a company of your choosing, it's what is known as using the Open Market Option (OMO). Some recent estimates have shown than around 60% of annuitants did NOT shop around for the best deal. It is also highly unlikely that your current pension provider has the best annuity offer for you, which means you will miss out on a potentially higher retirement income if you do not compare providers.

You only get one crack of the whip when it comes to getting the best annuity in the UK, as an annuity cannot be changed after it is purchased. This indicates that it is really important that you weigh up who has the best annuity deal for you.

In conclusion, always remember that you are not compelled to pay for an IFA if you feel you don't need one - use a broker are often are free of charge.

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