Pension Annuities Plus Income Drawdown
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PENSION ANNUITIES PLUS INCOME DRAWDOWN

Helping To Increase Your Pension Annuity or Drawdown Income





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This Annuity and Drawdown Comparison Service is Brought to you by Retirement Solutions (UK) Ltd.

One of the UK’s best known retirement income experts

Income Drawdown

A Selection of Possible Pension Income Providers:




Aegon Drawdown
Aegon Drawdown

AJ Bell Drawdown
AJ Bell Drawdown

Aviva Drawdown
Aviva Drawdown

Aviva Drawdown
Axa Drawdown

Canada Life Annuities
Canada Life Annuities

Curtis Banks Drawdown
Curtis Banks Drawdown

Fidelity Drawdown
Fidelity Drawdown

Friends Life Drawdown
Friends Life Drawdown

Funds Network
Funds Network Drawdown

Hodge Annuities
Hodge Annuities

Hornbuckle Drawdown
Hornbuckle Mitchell Drawdown

Just Retirement Annuities
Just Retirement Annuities

Legal & General
Legal and General Drawdown

LV Drawdown
LV Drawdown

Metlife Drawdown
Metlife Drawdown

MGM Annuities
MGM Annuities

Old Mutual Drawdown
Old Mutual Drawdown

Partnership Annuities
Partnership Annuities

Phoenix Drawdown
Phoenix Drawdown

Primetime Annuities
Primetime Annuities

Pru Drawdown
Pru Drawdown

Royal London
Royal London Drawdown

Sanlam Drawdown
Sanlam Drawdown

Scottish Widows
Scottish Widows Drawdown

Standard Life
Standard Life Drawdown

Transact Drawdown
Transact Drawdown

Zurich Drawdown
Zurich Drawdown

Income Drawdown

Shopping Around For A Higher Pension Income




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What Makes The Open Market Option Attractive?
The Open Market Option allows retirees to shop around for different ways to convert their pension fund into an annuity, as opposed to just taking the rate offered by your pension provider.

You could get more income from a pension annuity than you think. The Financial Services Authority agree. They say "You may be able to get a better annuity rate by shopping around. You should check what your provider is offering you and then compare this with the annuities on offer through the open market."

A UK government research study showed that 60 per cent of annuity claimants do not use their Open Market Option and 40 per cent of information packs sent from pension firms did not advertise the option clearly.

Many still do not use their Open Market Option, not just because they are unaware of the benefits of doing so, but don't actually realise they have an option. It has been claimed that those at retirement who do not use their option, taking the default annuity offered by their pension provider may be missing out on up to 40% more income.

According to the professional pensions publication, DC World, it is estimated that over £1 billion in pensions was lost by failure to get proper advice on the best-selling annuity.

To make the most of the Open Market Option it is important that you speak to a financial specialist who'll explain the different retirement options available.

Enhanced / Impaired Annuities


If you are in advanced years, a smoker or have impaired health you may be able to increase your pension annuity income.

You may be able to receive extra retirement income if you have a health problem, no matter how small or insignificant you think it is. It's essential that you tell our team of Pension Annuity Specialists about it. You will stand a better chance of a higher income for the rest of your life. This is also the case if you smoke ten or more manufactured cigarettes or use 85mg of rolling tobacco a day.

You may be in relatively good health - some people think they have to suffer from a serious medical condition such as cancer, heart disease or stroke to receive extra income in retirement - the reality is often surprisingly different. A seemingly unimportant condition or complaint may substantially increase your annual retirement income.

The reason why some pension annuities, called "Enhanced Annuities" or "Impaired Annuities", pay more than standard annuities is because those in better health tend to live longer than average. The annuity providers therefore have to pay out more over the healthier person's lifetime so their yearly income is usually lower. This is why it's extremely important to report any ailment, no matter how small you think it is to your provider. It may get you a higher rate of return.

In fact if you have one of nearly 1500 health conditions, such as asthma, being overweight, high blood pressure, heart problems etc., you must ensure you mention it to your specialist.

It is estimated that up to 40% of the UK population could boost their annuity income with an "enhanced annuity".

Annuities for Smokers?


If you are a smoker, pension annuity providers factor in that you're likely to pass away sooner than the average non-smoker, so they therefore will not be paying you your yearly income for as long. A presumed shorter lifespan means that being a smoker can increase the amount of annual income you receive from your annuity.

Additionally, higher annuity rates are sometimes offered to people who have retired from certain occupations or people who live in certain parts of the country.

As a smoker you may already be entitled to receive a higher income, but also, depending on your age, you may receive further enhanced rates of up to 30 percent above standard level annuity rates, i.e. if normally you would receive £1,000 a year as a non-smoker, you might receive as much as £1,300 per annum as an older smoker.

For the first time in your life it's likely to actually pay to be older and in "bad" health!

Annuities for Females?


Thousands of women retire every week in the UK, but did you know that when they buy a pension annuity, in general, they receive a lower income from their pension savings than men? They are being penalised when they buy their annuity simply because of their biological difference to men.

Insurers say that income from annuities for females are lower because of a longer life expectancy. Individual's annuity income is dependent on the insurer's estimation of how long they will live. The same pot of pension money has to last longer; it is therefore spread more thinly over more years.

This fact alone makes it even more important that women choose the right annuity and not just accept the one that they are offered by their existing pension fund holder.

But what actually is a Pension Annuity?


A pension 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.

Basically, an annuity converts a savings fund into income and that income will be paid to you for the rest of your life.

Pension Types?
You can buy an annuity if you have one of the following pension types:

 1. Personal Pensions
 2. Stakeholder Pensions
 3. Free Standing Additional Voluntary Contribution Schemes ( FSACs)
 4. Most Additional Voluntary Contribution Schemes (AVCs)
 5. Retirement Annuity Contract (RACs)
 6. Occupational Money Purchase Schemes
 7. Section 32 Policy (Buy Out Bond)

An annuity is payable for your lifetime, although it is possible to select a fixed period if purchasing an annuity with cash rather than pension funds.

Examples of these types of "Compulsory Purchase Annuity" are conventional annuities, with profit annuities and unit linked, or 3rd way annuities. Annuities that are purchased from savings, not from a pension scheme are referred to as Purchase Life Annuities and Immediate Vesting Annuities.

When your pension fund reaches maturity, your pension provider will advise you of the fund value, and general information about annuities and the level of annuity income you would receive. Pension annuities are usually provided by insurance companies.

You are then entitled to use your Open Market Option, which allows you to transfer the fund value to another pension annuity provider of your choice. This enables you to take advantage of a higher annuity income which may be available from a different provider.

This could be the biggest financial decision you'll ever make, so make sure that you maximise your income. Once you buy an annuity you cannot change your mind so you need to ensure you get it right first time.


Your Pension Annuity From?
 Aviva
 AXA Sun Life
 British Life
 Canada Life
 Clerical Medical
 Friends Provident
 GE Life
 Just Retirement
 Legal & General
 Liverpool Victoria
 MGM
 Partnership
 Pensions Annuity FS
 Prudential
 Scottish Equitable
 Scottish Life
 Scottish Widows
 Standard Life



Converting Pensions From?
 Abbey Life
 Aegon
 Allied Dunbar
 AXA Sun Life
 Barclays
 Canada Life
 Clerical Medical
 Countrywide Assured
 Eagle Star
 Equitable Life
 Friends Provident
 Halifax
 Legal and General
 National Westminster
 Prudential
 Scottish Equitable
 Scottish Life
 Scottish Mutual
 Scottish Widows
 Skandia
 Standard Life
 Windsor Life
 Winterthur
 Zurich
 and many others



Types of Pension 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:

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

If you choose a guaranteed payment period, then your starting level of income will be lower.

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.

Converting Your "Savings" Into Income


A pension annuity is an arrangement where you make a lump sum investment and from this investment you receive a guaranteed level of income for the rest of your life. So basically an annuity converts a fund into income and that income will be paid to you until you die.

As stated, an annuity is designed to be payable for your lifetime, but it's possible to select a fixed period if purchasing an annuity with cash rather than pension funds.

Examples of these types of "Lifetime Annuity" are conventional annuities, with profit annuities and unit linked, or 3rd way annuities. Annuities that are purchased from savings, not from a pension scheme are referred to as Purchase Life Annuities and Immediate Vesting Annuities.

Spouse benefits


Your surviving spouse, registered civil partner or financial dependents can be protected after your death, by choosing one of the following options:

Releasing Your UK Pension Reduction to half benefit,
Releasing Your UK Pension reduction to two thirds benefit or
Releasing Your UK Pension 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.

To reiterate, after death, the annual income paid to your spouse, partner or financial dependents will be a proportion of the annual income you were getting just before you died. The proportion has to be chosen at the time when you take out your pension annuity. It can be for example, 100%, 66% or 50% of your annuity at the time of your death. A higher proportion will have a higher cost, your annuity income will therefore be lower.

Annuity Payment Options


You can choose how and when you have your annuity income paid:

Releasing Your UK Pension monthly payments
Releasing Your UK Pension quarterly payments
Releasing Your UK Pension half yearly payments
Releasing Your UK Pension yearly payments

You can receive it in advance at the start of the payment period or in arrears at the end of that period.

What is a 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/Pension Release


As an alternative to an immediate annuity purchase, you can choose to release your pension funds using income drawdown .

Income drawdown lets you control your own income instead of getting a regular, set sum from an annuity provider.

You are able to access your full retirement savings and invest and withdraw money as you wish, instead of being tied to an annuity.

With income drawdown you also retain ownership of your pension fund and can therefore pass remaining funds on when you die.

Using income drawdown as a first option can give you time to make a final decision on how to fund your retirement - for instance you might eventually choose to purchase an annuity at a later date.

Why use an FCA registered broker?


1. They may be able to get a better pension annuity deal than you may be able to.

2. They're more likely to have access to a wider range of pension annuity possibilities than you.

3. Due to their existing relationships with pension annuity providers, they may be better placed than you to overcome any problems that might surface with your application.

4. You will have an expert point of contact should anything go wrong.

5. They work to a set of guidelines laid down by the Financial Conduct Authority (FCA) who regulate brokers' policies and working methods.

6. Pension Annuity Brokers have got an interest in recommending the right product for your particular circumstances. They'll not wish to fall foul of strict FCA rules.

7. If you decide not to get FCA qualified broker annuity advice, you may not be able to get compensation through the Financial Services Compensation Scheme if, in the future you have a complaint about their recommendation.

Income Drawdown

How We Help You




We search the providers' systems using specialist software and aim to make sure that we get you the highest pension income possible.
Income Drawdown

Helping to Boost Your Income




The things your specialist will look at include:
Releasing Your UK Pension Your required annuity income
Releasing Your UK Pension Any spouse or dependants' benefits
Releasing Your UK Pension Your previous occupations
Releasing Your UK Pension The type of area where you live
Releasing Your UK Pension Your attitude to risk
Releasing Your UK Pension Security versus flexibility
Releasing Your UK Pension Other assets you may have
...and importantly...
Releasing Your UK Pension Your health

Have you ever been hospitalised for any medical condition? Your broker will also ask if you are currently taking any medication - did you know there are over 1,500 health conditions that could result in an increased pension annuity? You may qualify for what is known as an Enhanced Annuity (sometimes known as an Impaired Life Annuity).

Additionally, higher annuities are often offered to:
Releasing Your UK Pension Regular smokers
Releasing Your UK Pension People who have retired from certain occupations
Releasing Your UK Pension People who live in certain parts of the country
Income Drawdown

Get Free Annuity and Drawdown Comparisons...




Due to the range of the pension annuity policies that financial specialists can offer, we cannot provide online quotations, only personalised comparisons.

An FCA registered financial specialist (not a call centre) will contact you to discuss your exact requirements and formulate a tailored proposal for your circumstances.

There is no charge for us investigating your policy and you are under no obligation to follow any recommendations that are made.

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