Retirees often have ambitious plans about their retirement. Many want to travel and see things that they have never experienced before, such as The Grand Canyon, New York or luxurious breaks in the Caribbean. Their plans might involve one lengthy trip around the globe or short breaks in major cities. The world really is their oyster. Some retirees like to be more adventurous, taking part in sky dives or white water rafting, along with exhilarating scuba dives and other activities. Others like to treat the family to holidays and gifts which also requires a lot of money.

The trouble is, with such ambitious plans the amount of financial backing required needs to stretch a lot further than you’d think. With annuity rates being at an all time low, it can be difficult for retirees to find the finances they need for effective retirement planning and to put their exciting dreams into action.

This means it is as important now as ever before to save for retirement. Saving is more difficult with growing utility bill costs but it is necessary to have as much as possible to buy an annuity. When it comes to purchasing the annuity, it is vital that you shop around for the best deal. Simply accepting the first annuity rate you are offered is not advisable, because this is usually the least attractive rate on the market. Using the open market option is free and can improve your income on retirement dramatically.

You can also ensure you have a better annuity by selling your house or equity in your house so that you have more buying power when it comes to purchasing your annuity. Many people who have ambitious travelling plans decide to downsize their house to a smaller flat or bungalow which releases vital funds for the annuity. This is a good idea as it makes more sense in the long run.

Some people also decide to have joint annuities which combines two peoples lump sums, perfect for people in a partnership or marriage that want to have extra funds to travel together or live out retirement dreams.

Chief Executive of Panacea commented, “Opinion is divided about the way the market will work after the retail distribution review. Some believe it will benefit IFAs who have already made the change to encompass a fee-paying proposition…Others see an unintended consequence where a significant part of the population that currently benefits from advice will no longer be able access it in the future…There is certainly a danger that growth in technology could mean more people rely on this for their financial planning. They believe buying on the web through a guided process can replace advice…However, with ever-evolving and increasingly complicated variety of solutions, there is a real danger of mis-buying becoming common practice”

It is true that there are hundreds of different annuity options to choose from, which is why the annuity buying process should involve a shopping around stage. This allows more people to find valuable annuities which work in the best interests of them and their money. However, using the internet shouldn’t be discredited completely.

The internet provides valuable information and tools which allows a retiree to swot up on the latest annuity options. This, teamed with expert annuity advice from an advisor, is the best way to ensure you get the best annuity rates.

Having elderly parents that need long term care can be a difficult time, not only do you have the everyday worries regarding their health but also the financial worries of how you will continue to fund their care. If they are in a nursing home, bills can become very high and many families struggle to meet the weekly payments which might amount to £500 per week.

A Real Life Story

Julie in Basingstoke was in just this position, “My mother and father were unwell and needed constant, round the clock nursing home care. Paying for one of them was difficult enough but paying for both became such a struggle that I got myself into debt! I decided to ask for some help and I made an appointment with an annuity adviser, who told me that by selling my parents’ house I would be able to purchase an immediate needs annuity.

I hadn’t heard of this before so I had to do a lot of research into it. Essentially it meant that by investing the money from the sale of the house, the annuity would pay monthly or weekly payments direct to the nursing care home for  however long it was required. This meant I no longer had to stress about how to afford bills and I was given peace of mind and security. This turned out to be a great option for both me and my parents.”

Compare Annuity Rates Using The Form On The Right Or Call An Adviser On 0800 321 3741

Always Seek Professional Annuity Advice

An immediate life annuity is not the only kind of annuity you can get. An enhanced annuity can also be purchased which means that if you have illnesses such as cancers and heart disease, you can receive a more attractive monthly income because your average life expectancy is likely to be less.

To find out if you or your loved ones qualify for such a deal, you should conduct as much research as possible or speak to an advisor. The annuity advisor will know the market well and this can give you reassurance that you are making the best decision.

Julie continued to say, “There is a lot of information on annuities which can be accessed on the internet. The internet is full of useful advice and you can make your own decisions with no obligation and in the comfort of your own home. This is the open market option and is basically our free right to shop around.”

Compare Annuity Rates Using The Form On The Right Or Call An Adviser On 0800 321 3741

Retirement planning can be an exciting time for many people who have been working most of their life. It can be a time to plan things you have always dreamed of doing, from traveling to spending more time with family. However, for many people it can also be a worrying time as you are no longer in control of your income. This is why deciding on your annuity is a vital part of retirement planning and without research to find the best life annuity rates, you might end up with less income than you had anticipated.

Buying An Annuity

Buying an annuity isn’t as complicated as you might think. You will probably be offered an annuity quote from your current pension provider and their quote may well be less than you could receive if you searched the open market. In fact in some cases, research shows the first quote you are offered often equates to about 30% less potential retirement income compared to if you sourced the best rate on the open market.

Search The Open Market

Searching the open market isn’t complicated either. You can search using the internet which is free and has some handy tools on it such as annuity rates calculators which allow you to access the best life annuity rates on the market.

Get Professional Annuity Advice

You might also want to speak to an annuity adviser who can tell you how the market is shaping up and what kind of quote you can expect to receive. They will be able to tell you if you qualify for enhanced rates. If you are a smoker, you will probably be eligible for enhanced annuity rates as your life expectancy is likely to be shorter than the average person of your age. This means the company can allow an enhanced rate.

A Word From An Annuity Company

One annuity company suggested, “You should find out if you are able to get an enhanced rate even if you don’t think you have a medical condition that would make you eligible. This is because some conditions such as diabetes or even high blood pressure results could allow you to receive an enhanced rate. If you decide to work two or three years more than this will also entitle you to a higher rate as again you will not require the annuity payments for as many years as the average person who retires. Your location might also have an effect on your rates – poorer areas will receive higher or enhanced rates where life expectancy is calculated at being less.”

If you are aged between 50 and 55 and wish to take a pension income before your 55th birthday – you need to act VERY fast, as the rules are changing around pensions.

Your Opportunity

You can still take advantage of the current minimum pension age of 50 if you act quickly:

Important changes from 6th April 2010

The forthcoming rise in the normal minimum pension age to 55 years on 6th April 2010 means that:


• Retirees born between 7th April 1955 and 5th April 1960 will still be able to take their pension benefits until 6th April 2010.


• If benefits are not taken by 6th April 2010 then the applicant will have to wait until they are 55 years old to take their pension benefits.


The change does not affect those with Protected Pension Ages and those whose funds have moved into Unsecured Pension by 6th April 2010.

Act now

To meet the legislative requirements, the annuity provider must receive funds by 1st April 2010.   If they receive funds after this date, they will have to return them to the ceding provider.
The application for an annuity income should be submitted at latest by March 5th 2010 to us.