We recently lost a client who, a few months ago, we had helped set up pension income for.

It was very important to our client that should anything happen to him, his wife would be looked after and continue to receive an income afterwards.

Setting their annuity up with the correct guarantee period and spouses benefit has allowed his widow to not worry about her income in this difficult period.

I mention this as getting the most (and most appropriate) income from your pension fund is crucial but often the various retirement options are not understood.

If we concentrate on annuities which are the “simplest” retirement option, there are many variations that need to be considered.

Simply put, an annuity is a type of insurance that guarantees you a regular secure income from your pension fund for the rest of your life no matter how long you live.

Often clients will opt to take the annuity offered with the company that they have saved with over the years.

This could be just fine but there are a wide variety of rates available and this could result in a much lower income than might be on offer by shopping around.

If you are in poor health when you come to take your pension fund, you could benefit from a higher income through an Enhanced Annuity.

These types of annuities take account of any health or lifestyle issues you may have which may affect your life expectancy.

If you qualify, this could lead to a higher starting income that you could expect from a normal annuity arrangement.

It is estimated that 40% of people retiring could qualify for an enhanced annuity giving them up to 30% more income*

Make sure you check all your options before you take you pension fund as the wrong option can be very costly. For more information please see our Guide to Retirement Options.

*www.partnership.co.uk/retirement

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