Pension Annuity Rates

When you retire, you cash in your pension pot and use this money to buy yourself the best pension annuity rates. This is a guaranteed income for life paid by the annuity provider in exchange for your lump-sum pension pot.  The income you receive will be based on factors such as your age, postcode, gender, lifestyle and state of health.

Unfortunately, the vast majority of people simply buy their pension annuity rates from their existing pension provider, which can often mean that they do not get the best deal. It is vital that you shop around for the best pension annuity rates.

Finding the best pension annuity rates

In 2002 the open market option was launched, which means all pension savers have the right to shop around on the open market for the best pension annuity rates. It is possible to get an extra 30% more income by using the open market option. At the same time shopping around can be beneficial if you have lifestyle or health issues can qualify for enhanced pension annuity rates. These lifestyle factors can be a simple as being a smoker or being overweight. Other more serious health issues can qualify you for impaired annuity rates and can bring very significant increases to annuity income.

Pension Annuity Calculator

Use the pension annuity calculator to find the best pension annuity rates on the open market. This simple to use calculator can help you get the retirement you deserve by increasing the income from your pension pot.

Finding advice on the best rates can be difficult and you should always try and seek the help of a specialist independent financial adviser. After using the pension annuity calculator, the open market option is there to help you shop around to find better rates from your pension.