Retirement Annuities
Get up to 30% More Retirement Annuity Income…
What are retirement annuities?
Retirement annuities are the predecessors of personal pensions. They were originally designed for the self employed who by the very nature of their employment status were denied access to company pension schemes. Retirement annuities later became popular with those who, although employed, were not provided with a pension scheme by their employer.
Retirement annuities are the predecessors of . They were originally designed for the self employed who by the very nature of their employment status were denied access to company pension schemes. Retirement annuities later became popular with those who, although employed, were not provided with a pension scheme by their employer.
How do retirement annuities work?
Retirement Annuities work in a specific way. They are predominantly “With Profits” based and provided you pay your regular contributions as agreed, you are guaranteed to receive, at your nominated retirement date, a specified annuity amount each month or year. In addition to this, your regular annuity could also be increased by the addition of bonuses
Quotes based on £100,000.00 purchase amount, conventional, level escalation, nil guaranteed period, paid in arrears without proportion. Annuity rates correct as at 14/01/2010.
Quotes based on £100,000.00 purchase amount, conventional, level escalation, nil guaranteed period, paid in arrears without proportion. Annuity rates correct as at 14/01/2010.
Quotes based on £100,000.00 purchase amount, conventional, level escalation, nil guaranteed period, paid in arrears without proportion. Annuity rates correct as at 14/01/2010.
Quotes based on £100,000.00 purchase amount, conventional, level escalation, nil guaranteed period, paid in arrears without proportion. Annuity rates correct as at 14/01/2010.
Quotes based on £100,000.00 purchase amount, conventional, level escalation, nil guaranteed period, paid in arrears without proportion, spouse/partner annuity of 66% payable without overlap. Annuity rates correct as at 14/01/2010.
Quotes based on £100,000.00 purchase amount, conventional, level escalation, nil guaranteed period, paid in arrears without proportion, spouse/partner annuity of 66% payable without overlap. Annuity rates correct as at 14/01/2010.
Are retirement annuities still available?
New retirement annuity plans have not been available since June 1988 but it is possible to continue contributing, either by way of regular contributions or lump sums, to existing plans. Retirement annuities have been replaced by personal pensions.
What is the difference between retirement annuities and personal pensions?
Retirement annuity plans, sometimes known as Section 226 Retirement Annuities, had some benefits over personal pensions in that they were not subject to the "earnings cap" which meant that for older, higher earners, it was possible to invest significantly more into a retirement annuity rather than a personal pension where earnings were capped.
However, with the advent of legislation aiming at simplifying pensions, now it is only those with ultra high earnings, i.e., those earnings almost £800,000 a year plus where retirement annuity holds the potential for maximising pension contributions.
The other major difference between a retirement annuity and a personal pension is the way in which the tax free cash sum is calculated. As a rule of thumb, a personal pension can provide up to 25% of the accumulated fund as a tax free cash sum. As retirement annuities provide a specified income in retirement, the tax free cash sum is based on three times the amount of the annuity after tax free cash has been taken. In addition, investors were never permitted to use their retirement annuity plans to contract out of the State Earnings Related Pension Scheme (SERPS).
How can I get retirement annuities advice?
Due to their specialist nature, it is imperative that specialist pension advice is sought in relation to retirement annuities and this is doubly true at retirement. The benefit of using the accumulated fund to secure higher annuity rates should be weighed against any guaranteed annuity rates that may apply and the potentially higher tax free cash sum that may be available.
Thinking of buying an Annuity from your pension fund or from private capital? Our Annuity Service provides:-
- Depending on your pension provider up to 30% More Annuity Income
- Specialist advice on different types of retirement annuity arrnagement including investment annuities & with profit annuities
- Assessment of your circumstances to find the most suitable type of annuity for you or whether there are any other options more suited to you.
- Information & Advice on lifestyle annuities - including smoker annuities and impaired health annuities you may get even more annuity income.
- Comparing retirement annuity rates to ensure that you maximise your annuity income.
- Explaining the annuity options available to you.
- Helping you with the relevant paperwork to ensure that you annuity is processed smoothly.
Use our Retirement Annuity Quotes & Advice Service