The best way to figure out if you should invest in annuities straight away is via a pension annuity calculator. On the face of it, annuities do not seem to be the best investment when it comes to growing pensions right now. In 2009, it was shown that annuity rates were half the level they were in 1994. As annuities are designed to last a lifetime, it is vital that you contact an independent financial advisor today before making a decision that will last for the rest of your life.
Falling Annuity Rates
You need a pension annuity calculator to decide between the best and worst rates on offer. However, it is unlikely that there is an exceptional offer available. This is why pension savers need to follow basic advice such as securing the value of the pension pot by switching to cash and bonds as you near retirement. Don’t delay the purchase of an annuity unless you are considering income drawdown instead. Also, if you are in bad health, apply for an enhanced annuity which you should be entitled to.
When using a pension annuity calculator, bear in mind that you should have a larger income the older you are. Enter your gender, your age, the cost of the annuity, possible poor health, escalation rates and a guarantee period (if any). At time of writing, using the calculator, a 63 year old man with no health problems, guarantee or escalating rates who purchased a £100,000 annuity will find the best deal from Aviva Life & Pensions Limited who offer an annual income of £6,556.
Naturally, this figure will change depending on your individual circumstances. This is why you need to contact an independent financial advisor who can help you look for the right features and benefits and your best value for money annuity provider. Fill in our form to learn more about the pension annuity calculator and to arrange a meeting with an advisor.