subject: Getting the best annuity rates [print this page] Getting the best annuity rates Getting the best annuity rates
An annuity is what people mean by a pension, it is the regular weekly or monthly payment you get when you're retired. You basically "buy" an annuity with your pension fund. There is no going back once you've signed the deed, which is why it is important to shop around and find the ultimate and best one for you.
As such you need to do all your research and try and find the one which wll suit your specific situation and requirements.
It is important to find the best annuity rates and get several annuity quotes before signing anything. Do not accept the first one you're offered, as this is probably not the best one out there and research has shown you can get one which is 30% better value if you bide your time and shop around.
Some people think it is best to get an independent advisor to help them to make this big decision. They often have access to a wealth of information and can help you to make an informed decision rather than having to search and rifle through the jargon yourself.
You do not need to decide on anything straight away as soon as you reach retirement either, you can wait until you're 75 before deciding on anything.
There are various types of annuity to choose from. For example, a joint life last annuity- which basically means that when the first person within your partnership dies, the annuity is transferred to the partner and will continue to be paid to them until they die. On the other hand, some people decide to go for an "income draw down" which means that you can take money directly from your pension and buy an annuity later on.
Whichever one you choose will depend on the situation you are in when you retire, after all, everyone is different.
