Annuity Pathway

Your Simple Annuity Journey

share |

Just a selection of our possible annuity providers...

Aviva Pension Annuities Hodge Lifetime Canada Life Pension Annuities Friends Life Pension Annuities Legal and General Pension Annuities liverpool Victoria Pension Annuities Prudential Pension Annuities Scottish Widows Pension Annuities Reliance Mutual Pension Annuities Just Retirement Pension Annuities MGM Pension Annuities Partnership Pension Annuities

Please note that this site is designed to assist those looking to draw benefits within the next six months and we're unfortunately not able to assist where the timescale is longer than this...

Shall we begin?

We haven't been formally introduced yet, so it would be presumptuous of us to claim that we know what's best for you at this stage :o)

Yes, we know that it will take a little time to read this page, but we REALLY (sorry to shout) do encourage you to do so. It is designed to help you understand a little more about annuities. You therefore should be able to recognise the best advice when you receive it.

You need to feel comfortable about the amount you'll be receiving. The author, Jonathan Clements wrote "Retirement is like a long vacation in Las Vegas. The goal is to enjoy it to the fullest, but not so fully that you run out of money."

"Considering the rotten mess the economy is in - it's with thanks to your good work that my portfolio seems to have stood up relatively well! Much appreciated." ~ Mr PD
Take advantage of our free, clear advice

annuities-pension Under what is called the 'Open Market Option' you can transfer your pension fund to ANY annuity provider, not just your current pension fund provider.

This is the reason behind this site... the no obligation annuity enquiry form below will connect you with your own personal annuity expert who will not only hold your hand along the annuity pathway, but who will also strive to lead you confidently in the right direction.

Click here to find out why there is no direct charge to you for this service and how your broker earns their commission.

The main aim of course is to help you achieve better annuity returns than what is offered from your current pension provider. You should exercise your advantage, the right to choose the best annuity scheme for you!

"Thanks again for your undying assistance." ~ Mr MB
What should I know?

An annuity is an arrangement where you make a lump-sum investment. From this investment you receive a guaranteed level of income.

Most annuities are bought using funds held in money purchase pension schemes. An annuity is payable for your lifetime, although it's possible to select a fixed period if purchasing an annuity with cash rather than pension funds. Various annuity options are discussed in the section below headed 'Types of Annuities'.

When your pension fund reaches maturity, your pension provider will advise you of the fund value. They will also give you general information about annuities and the level of annuity income you would receive. You are then entitled to use your 'Open Market Option', which allows you to transfer the fund value to another annuity provider of your choice. This enables you to take advantage of a higher annuity income which may be available from a different provider.

A quick pause...

annuities-pensions
  1. Do not worry, a pushy salesman is not going to turn up at your door.
  2. Your cover can easily be arranged over the phone.
  3. You won't be phoned by an impersonal call centre.
  4. You'll be called by a friendly professional at a time that's convenient to you.
  5. We will not share your address, phone number or email address.
  6. Your advisor is a Financial Conduct Authority (FCA) qualified and regulated professional is covered by the Financial Ombudsman Service.
  7. You will be under no obligation whatsoever to proceed.

>> Skip to free annuity comparison enquiry
"Thank you very much indeed for your letter, it's by far the clearest statement that I have read." ~ Mr PS
Types of Annuity

There are a wide range of options which can be selected when choosing an annuity scheme. The most widely used annuity options are listed below.

Minimum Term

The income is guaranteed to be paid until the death of the annuity holder (the annuitant), but it can also be modified to include any of the following options:

  • 5-year guarantee - annuity ceases at death of annuitant, or after 5 years, whichever is the longer
  • 10-year guarantee - annuity ceases at death of annuitant, or after 10 years, whichever is the longer
  • Joint life annuity - annuity ceases on the death of the second of two named annuitants

Spouse benefits

Your spouse can be protected after your death, by choosing one of the following options:

  • Reduction to half benefit
  • reduction to two thirds benefit or
  • full benefit
Thus the annuity is adjusted to the new level at the death of the annuitant or at the end of the guarantee period (if selected), and continues until the death of the spouse.

Escalation

Your annuity can either be paid at a fixed level or you can include an escalation at 3%, 5%, or at the % RPI (annual increase in retail price index). Thus you can choose to compensate for inflationary effects on your income. However the initial income level will be reduced if you choose escalation.
Purchased Life Annuity

A purchased life annuity is an annuity purchased with your own funds, instead of from a money-purchase pension fund. It operates in the same way as a Compulsory Purchase Annuity, but it has tax advantages.

The entire pension which you receive from a Compulsory Purchase Annuity is treated as taxable income in the same way as income from normal employment would be. However when you buy a Purchased Life Annuity, that part of the annuity income, which is calculated as capital repayment to you, is tax-free. Only that part of your annuity income which is interest paid on your investment is taxable.

With similar annuity rates, the effect of this tax treatment of a Purchased Life Annuity, for a basic rate tax-payer, would be to increase net income by approximately £200 per month, from a £200,000 investment.

Your consultant can assist you in making optimum decisions for such investments, and would be happy to provide comparative illustrations of such options.

Income Drawdown

You can choose income draw-down as an alternative to an immediate annuity purchase.

With this arrangement, you should first take your tax-free cash element, (it cannot be taken later), and the balance remains in your selected pension fund. There is an exception to this in the case of phased drawdown, whereby your tax free cash and income requirements can be combined. You can now draw down a chosen amount of between 0 and 100% of the calculated single person's annuity value for the remaining fund. The residual fund can be converted into an annuity when you choose to end the income draw-down arrangement.

Income draw-down is definitely not a suitable option for all. It is essential that any individual obtains the appropriate level of advice before committing to this course of action. Investments can go down as well as up and are not guaranteed.

"It is always a pleasure to work with IFAs such as your goodself, who are not only diligent but knowledgeable." ~ Mr AS (Independent Trust Specialist)
Compare the top annuity providers

annuity-logo-animation You should exercise your right under the Open Market Option to compare and then choose the best annuity scheme that suits you personally. Consider how much you might lose out on if you don't!

The difference between the best and worst annuity incomes can be astonishing. Please complete the confidential enquiry below. Please note that this is not an automated comparison site, it's designed for those retiring imminently who want bespoke help in obtaining the right annuity at the best rate available. Your privacy is important to us, we do not share your contact details.

Fund before tax free cash taken (min. £30,000) IMPORTANT: For funds under £30,000 please visit Annuity Answers
Pension company
Annuity type required
Do you smoke?
If so, number per day?
Date of birth (min. age 55)
Retirement date
When are you looking to buy an annuity? (Must be within 6 months - if over 6 months please visit Annuity Answers)
Health conditions? (If so, you may receive higher income)
Title
Name
Phone number
Work phone number
Mobile phone number
Email address
Single or joint annuity?
Spouse/Partner
Date of birth of spouse/partner
Gender of spouse/partner
Do they smoke?
If so, number per day?
Spouse/partner health conditions?
Any comments, questions or feedback?
Get independent annuity comparisons directly from an authorised and regulated advisor now...

Company Registration Number: OC323180 Financial Conduct Authority Number: 460094. Annuity Pathway is an advertising initiative for Ingard IFM LLP Ryan House, 18-19 Aviation Way, Southend-On-Sea, Essex, SS2 6UN.
Ingard Independent Financial Management is authorised and regulated by the Financial Conduct Authority, covered by the Financial Ombudsman Service and Financial Services Compensation Scheme - details available on request.