BAY ASSOCIATES LIMITED
Independent Financial Advisers
Professional Advice For You, Your Family & Business
62 High Street - Honiton - Nr Exeter - Devon EX14 1PQ
Call us on: 01404 47774

TRUST & INHERITANCE TAX PLANNING........PENSIONS........ SAVINGS........INVESTMENTS........ MORTGAGES........ EQUITY RELEASE
Bay Associates Honiton Devon
 

 

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
 
       

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