Annuities - how they work

Find Unbeatable Annuity Rates with PensionLite…


Step 1

Tell us about you and your needs...

Step 2

We review your circumstances and consider your options...

Step 3

Your no obligation recommendations are posted.

If you do not accept our advice and recommendations you have nothing to pay!!

View our 76-second video about Annuities

Here at Pensionlite, we give dedicated advice on annuity providers and rates.

We are proud to be able to offer this service with no up-front fees to pay, you only pay for advice you accept! 

Our priority is to give you all the information and advice that you might need, and help you come to a decision regarding your annuity. You only pay for our work once you are completely happy with a plan and would like to move forward.

We search all annuity providers to find you the very best rates. We will consider short term, life time and guaranteed annuities to find the solution best suited to you. It could well be that just part of your pension should be used to buy an annuity and the remainder drawdown for consideration at a later date. We will explain your options for you to consider in your own time, in your own home before making any decisions.

We are successful in finding such great rates because we assess all of your options, not just a select few. We are able to do this because we collect detailed information from you, about your circumstances and requirements, and your health and lifestyle. It is quite unlikely that your existing pension provider will offer you the best annuity rate possible, and they will not advise you on where to get a better one. For this reason, we recommend you contact us to find out if you’re getting the best deal.

It is very important when making critical decisions such as this one, that you have all the necessary information to hand. Choosing an annuity will have an effect on your income for the rest of your life, so you must have all of the facts and figures before you can consider your options. This information helps us to find you the very best annuity rates, and there are several ways in which you can contact us;

  • Using our online form
  • By email
  • Over the phone

The first step is to contact your existing pension provider in order to gather all of the required details. Guarantees or special annuity rates may be omitted when they communicate with you so must ensure you ask the relevant some questions. Our specialist advisors will be happy to let you know the information we need. Get in touch with us today on 01952 279 379.

Answers to some common questions:

Is an Annuity right for me?

The purchase of a basic annuity is simply a transaction whereby you exchange your pot of money for an income for the rest of your life. The annuity you buy will have certain options or features which you can choose. The more options and features you want the less income you will get. Equally, and to improve your benefits, the older you are and the worse your health and lifestyle the more you will get. Annuities calculated this way are referred to as Enhanced Annuities.

Annuity rates are driven by commercial markets and like anything else you buy the value you get or the price you pay will vary significantly.

As a rule of thumb, do not accept the annuity offered by your existing pension provider as it is unlikely to be the best available.

If you are seeking the comfort of a known income now and do not wish to accept any risks at all then a standard annuity is probably for you.

Besides the competition between providers to sell you an annuity the two key market factors in you obtaining best value for money will be interest rates and the value of your pension fund. Low interest rates mean low Gilt Rates, which to a large extent secure the income you receive, and the smaller the fund size the smaller the income you will receive.

Interest rates look set to remain low for some time as Governments around the world look to give confidence to the markets and your pension fund value is probably some way down on its mid 2007 high.

If you feel that markets will improve over time then you may wish to consider an investment backed annuity. These start low and are designed to provide increasing income as values increase.

If you feel that markets will improve over time then a short term or temporary annuity would give you the opportunity of security for a set period of time and the opportunity to re-apply at a later date.

If you feel markets will improve but you don’t want to or can’t wait to take benefits an acceptable short term solution may be to enter into an ‘unsecured pension’ or drawdown pension. This allows you to take either just tax free cash, or tax free cash and income, whilst leaving your fund invested to a time when market conditions are more favourable for you to lock into an annuity.

If you have a large fund the unsecured or drawdown pension may be a better long term option as it has certain advantages in relation to the maximums you can take out and how they can benefit your spouse or next of kin when you die.

The options are available and whilst the decisions may not be easy we are here to help. Enquire now.

What are enhanced annuities?

Enhanced Annuities take into account your specific personal, health and lifestyle details. By doing this the annuity providers are able to better assess your life expectancy and doing this could provide as much as 40% more income. In our experience more people qualify for some form of enhanced rates than do not. Our simple over the telephone questionnaire will ensure that basic things like your post code, your main lifetime occupation, existing and past smoking and drinking habits, medical history and general health, along with details of any prescription medicines you may be taking are all considered. Buying an annuity is for life, you can never change your mind, so making sure you get the best rate possible is vital. The only way to do this effectively is by searching the whole of the market. Enquire now.

How much will it cost ?

We provide independent, no obligation review and recommendation reports covering all aspects of our specialist areas of work. You are under no obligation to follow our advice and we only get paid if you accept our recommendations and a transaction is agreed by you with the full knowledge of what it may cost.

The amount work we carry out for you and the degree of complexity of any transaction will have a bearing on costs and so it is important that we are open and honest about these figures before you agree to do business with us. A full disclosure of our charges is always included within our recommendation reports BUT if you do not accept our advice there are NO COSTS.

Our aim is to always provide our clients with tailored solutions, created by advisers with particular skills and specialist qualifications. Our advice process is always to gather a full understanding of our client’s needs, circumstances and aspirations together with detailed analysis of any existing arrangements before making written recommendations.

This enables you to make choices from a position of knowledge in your own home and in your own time with PensionLite on hand to provide support as well as answer any questions before any decisions or actions are taken.

Will you compare ALL annuities?

PensionLite provide a whole of market fully advised service so you can be assured that we will look at all of your options. Unlike many firms we do not take the easy route by just using a small selection of annuity providers.

What options do you have?

Once it has been established if you qualify for enhanced annuity benefits based on your health and lifestyle you will have a number of choices as to how your income is paid and who is to receive it. The choices you make will increase or decrease your income and in the case of an investment backed annuity may provide opportunity for gradual improvement.

The choices you need to consider, which we will discuss with you, are;

  • Do you want a single or joint life pension?
  • If you provide for a spouse should he or she receive a full pension or a proportion of yours if you were to die first?
  • Do you want an increasing or level income?
  • Do you wish to preserve something for your next of kin, other than a spouse, when you die?
  • Do you want a short term annuity with a review option to enable change?
  • Do you want guaranteed cash values at the end of the term?

The only way to do this effectively is by searching the whole of the market. Enquire now.

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