Is Starting A Pension The Right Choice For You?

This is because it heavily depends on your personal circumstances and whether a pension could be financially rewarding.

However, look below for some of the key reasons why a pension could be beneficial for your personal needs.

An annuity is available with a diverse range of choices, making them ideal for a range of different personal circumstances. For example, you might want to take out a single-life or joint-life annuity. A single-life annuity pays you an income for your life and ceases on your death; on the other hand a joint-life annuity will carry on paying out to your spouse after your death. You can even select how much money is paid out; as you might want half or even two thirds of the original income to be paid to your spouse. You can even request inflation proof annuity.

One of the main advantages of a retirement annuity is that it allows you to receive the security of a fixed income, which you will get instead of your pension. This will give you a sense of security through knowing exactly how much cash you will have to spend on each month; you will then be in a better position to budget. Due to this, having an annuity is like having an annual fixed wage; meaning that you will have the stability and consistency that you are used to.

If you should decide to take out an annuity then even if you die before you reach the appropriate age your loved ones can still benefit thanks to annuity protection. With this option, a spouse or family member can receive a lump sum upon your death. However, this would be subject to a tax charge; it does ensure that your money will not be lost and that your family will receive some form of financial support. This feature of an annuity means that it can help your family when they need to pay for your funeral and can make the whole ordeal less stressful.

It is straight-forward to when you authorise a policy in your name as your business pension supplier will usually suggest you take up the offer of an annuity as retirement age draws closer. Put simply, if you have an interest in an annuity fund then just wait until someone speaks to you about it. You should be aware that until you are 75 years old you are not obliged to have an annuity but this age limit could well change now. Consequently, it could well be worth thinking about retirement planning or you should speak to an expert, like those which are available at .

Thanks to a policy you will find that many providers will be able to offer you greater value for money. If an annuity appeals to you then you understand it is a good idea to look around and look at what is on offer and how it suits you. Firstly, you could discuss with your pension advisor, look at the options you may have analyse the market.

These key points highlight a few of the advantages of starting a pension but it really does depend on your personal circumstances as to whether it could benefit you.

by: Emilee Jaden

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