|
Taking
your Pension Benefits
Many people who are about
to retire have made some provision by taking out a Personal
Pension.
Unfortunately, they are discovering that due to the low
annuity rates currently available, the valuable
income they will receive for the rest of their lives is
lower than expected. When you apply
to your pension company for your retirement figures, they
will normally only provide you with their own rates for
what is known as a Conventional
Annuity.
They will not explain that there are other ways of providing
an annuity that may provide the potential for a higher
or more flexible income.
A Conventional Annuity CONVENTIONAL
ANNUITY, although guaranteed, carries associated risks,
such as:Annuity rates are low; in fact there seems little
likelihood of them improving in the near future and we
would not recommend anyone to defer the purchase of an
annuity in the hope of obtaining a higher rate in the
future. The cause of low annuity rates is a combination
of low long-term interest rates and improved mortality
(pensioners are living longer).
If you purchase an annuity then the fund is spent. If
you die in the early years there may be some part of the
guaranteed period remaining so that the commuted value
of some future instalments would be payable to your estate.
So, what options do you have?
Well, there are other ways of providing an income from
your pension, such as:
-
Phased
Retirement
- Income Drawdown
- With-Profit Annuities
- Unit-Linked Annuities
Although, these options
carry varying degrees of risk, and some are only suitable
for larger pension funds, they all have the potential
for providing a higher income
throughout retirement than a conventional annuity.
Even if you prefer to stick with the Conventional
Annuity method, you may be able to achieve a higher
income by transferring the fund to another company
.So, don’t just accept the offer made by your pension
company – contact Bay Associates for a free initial 30
minute appointment about your options -
It Could Affect The Rest Of Your Life!
Contact
Bay Associates now to find out more at our office in Honiton
on 01404
47774 or
our Exmouth office
in on 01395
266656
|
