When you retire it’s vital to stay financially secure. Buying an annuity ensures you will have a predictable and steady income for the rest of your life. Annuities have been the traditional retirement choice for many years, and though pension freedom has introduced other options, they remain very useful things to have.

An annuity is actually an insurance product. You pay a lump sum to a provider, who in turn agrees to pay you a regular income for the rest of your life or for an agreed period of time. This income is guaranteed and does not depend on a limited pot of money, so if you live a long time you may get back more than you paid.

Types of Annuities

There are many different annuities available on the market, but they all fall into one of two broad categories: conventional lifetime annuities and enhanced annuities.

Lifetime Annuity

A conventional lifetime annuity will provide you with a regular income from the beginning of your retirement for the rest of your life. You can also set up a joint lifetime annuity which will continue to pay out to your partner after your death (and vice versa).

Enhanced Annuity

If you have a qualifying medical condition which could give you a reduced life expectancy, you may be able to buy an enhanced annuity. This would pay out a higher regular income. Some lifestyle factors (such as being a long-term smoker) can also qualify you for an enhanced annuity.

Is it right for me?

An annuity is no longer the only way to take your retirement income. There are now various other options such as income drawdown, and it’s also possible to combine several options to create a truly versatile retirement plan.

Value of Advice

This is where a financial adviser can be invaluable, by helping you understand all possible courses of action, creating the best plan for you and putting it into effect.. A whole-of-market financial adviser can search all the annuities on the market to find you the best deal and potentially get you an enhanced annuity should you qualify.

Why Choose SLG

We have helped many clients over the years with their retirement planning. read more....