Annuity Best Buys

Annuity Best Buy Deals

Annuities, in general terms, refer to the selling of your pension to an insurance provider in return for an income. You are effectively trading your pension for the promise of a generated income. The most common reason for people investing in annuities is because they are retiring.

Finding the best annuity buys on the market may take you longer than your expected, but it is worth spending a little time researching and doing your homework on the type of annuity policy. Transferring your pension into annuities is a serious decision as you will not be allowed to change your decision once you have finalised the agreement with your insurance provider.

When reviewing your application to buy annuities, insurance underwriters will take into consideration a number of factors including:

• Your gender (until Dec. 2012 when there will be an equalization of annuity rates for men and women)
• Your age - generally the older you are the better the rate
• Your state of health - if you are in poor health you can benefit from a better annuity deal
• The amount of money you have in your pension.

See below for our partner service to shop around the UK annuity market:

There are many advantages to exchanging your pension your annuities, some of which include:

• You may end up with more money that your initial pension fund paid out
• Provides you with a regular, continual income
• Wide range of options including joint/single annuity plans
• You are not bound to your present insurance provider so you are free to shop around and compare a number of different annuity plans

However, many people choose not to become involved with annuities for reasons such as:

• Once you have made the decision, you are unable to change your mind back
• If you were to die early on in your annuity plan, you may not be getting value for your money
• The income are likely to be likely to receive will depend largely on annuity rates at the time of purchase

If you are considering an annuity policy you may want to use our partner service below to access some of the annuity best buys on the market at present.