12:07 25 February 2013
The world of retirement planning is fraught with headaches and jargon. It isn’t always easy to determine what your best option will be. Before you make any final decisions, it is always beneficial to contact an Independent Financial Advisor to help you with your retirement planning. They can decode the jargon so you’ll get just the facts you need and want. Here are seven benefits from choosing a compulsory purchase annuity.
•You’ll receive a guaranteed income for the rest of your life regardless of market trends.
•Freedom to choose how often you receive payments such as monthly, or even less frequently.
•Ability to take advantage of the Open Market Option and choose the best annuity provider for you.
•You can choose whether to use all or just a portion of your pension to purchase an annuity.
•You can choose an annuity that will account for the rate of inflation in the future.
•Often those with poor health receive higher payouts.
•Your annuity investment can be paid to dependents in the event of your death.
Remember when you do your retirement planning, that you may have pensions from multiple companies. Claim all the pensions you are able to, including the state pension and once you have an idea of the size of your pension pot, you will be better able to choose which annuity or other alternative is right for you.
If you like the sound of the security of the guaranteed fixed income, or even the income which increases to compensate for the rate of inflation an annuity is most likely the best way for you to go. Talk to an Independent Financial Advisor to get the best advice and help with your retirement planning.
Disclaimer: Supanet is not responsible for, and disclaims any and all liability for the content of comments written by contributors to this website