So you are reaching your intended retirement age and you are beginning to receive your maturity options from your various pension providers. What do you do now? How do you decide on which style of annuity is best for you. Level in payment or increasing? A spouses pension or single life? Take the tax free cash or not? Or even is buying an annuity the best way for you to provide income in retirement?

For the purpose of this article, lets assume that a single life, escalating annuity is best for you. The next part of our advice process now involves finding which Pension Provider is going to offer you the highest income for your fund. This ability to shop around for the best annuity rate is called The Open Market Option.

The Pension Providers base their annuity rates on their own experiences of average life expectancy. Don’t be fooled by there warm brochures covered with pictures of a happy pensioners. They want you to die prematurely so they don’t have to pay your annuity out for long. In fact, a number of Pension Companies will now offer enhanced annuity rates for smokers and retirees who have serious medical conditions such as high blood pressure, historical heart attacks, diabetics etc.

We don’t advocate you start smoking just before you retire but if you do, or you take medication, then contact us to see how much extra pension income you might get.

You only get one chance to buy your annuity so make sure you contact us to get the correct advice on both style of annuity and the Pension Provider offering the highest rate.

Then all you have to do is live a long and happy retirement!