Annuities Explained Annuities and IFAs

IFAs can be a BIG help with your Annuity

Retirement should be an enjoyable and relaxing time where one can enjoy the rewards from a life of hard work. For many this may turn out to be the case, but with an ever ageing population and the life expectancy growing each year, retirement is not a time to abandon financial prudence.

One of the key areas where it pays to be on the ball is with purchasing an annuity.  Employees who have paid regularly into a long-term and trusted pension scheme may not even realise that there is an open market for annuities and this can cost them hundreds of pounds each year during their retirement.

The difference in annuities

There is no obligation to take out your annuity with the same company you used to build up funds. This open market of annuity can offer tremendous benefits for the consumer if they know what they are doing. In 2011, a typically single life annuity for a male with a value of £100,000  might offer a monthly income of £500 with one provider and £580 with another. The difference is vast but each annuity plan will have its own special terms and conditions that may, or may not make it suitable. This is where an independent financial advisor can really help you to make the most of your retirement.

How an IFA can help

  • Finding the right annuity plan – Instead of picking the default option offered by your pension provider, an IFA will consult with you and do their best to match your wants and needs to the most appropriate annuity.
  • Meeting your needs – Retirement is not the same for all people, so consulting with an IFA can really help you to free up the funds required for any grand plans or ensure that you have the most stable provision possible for you and your family in your retirement years.
  • A wider choice – IFA are legally obliged to provide independent, impartial advice and their systems allow them access to all the  annuity deals on the market, far more than you’ll be bale to find through any search engine.
  • Security – If anything goes wrong with your annuity or if you feel you were badly advised by an IFA you may be able to seek compensation, whereas making the decision on your own offers you no such safeguard.

It  is a terrible shame that so many people are selling themselves short and missing out on a far more lucrative retirement than they might otherwise have. With the average person likely to soon be working till they are 66 or even 70, it make perfect sense to really take your time over deciding your annuity plan and to consult with a independent financial advisor to make the most of it.

Thinking of Retiring Soon? Have a look at our Annuity Comparison Table

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