PENSIONS – Annuities

If you are about to retire and have a Pension Fund available, new regulations give you the option to move your fund to another provider of your choice.

City Financial uses the latest technology to compare annuity quotations from all the major annuity providers. We will strive to find the very best annuity to suit your circumstances, taking into account any pre existing health conditions. In many cases, annuity rates and terms can be better than those offered by your pension company.

Annuities Explained
Having successfully built up a pension fund during your working life, there will come a time when you will need to make some important decisions about how to use this fund. These decisions involve how you intend to draw your pension income to ensure the benefits best suit your needs in retirement. It is normal for people who are retiring to convert a portion of their pension fund into a tax-free lump sum with the balance used to purchase an annuity.

What is an Annuity?
An annuity is a regular income paid to you. It is normally paid monthly, although you could choose a different frequency such as quarterly, half yearly or annually if this suits your needs better. Pension annuities are normally payable from the time you retire and are paid throughout the rest of your life.
It is possible for your Pension Annuity to continue after your death and be payable throughout the life of your spouse or other dependent. This is known as a joint life annuity.

It is also possible for the income payable to you or to your dependent's to increase each year either at a fixed rate or perhaps in line with inflation. This is known as pension escalation.

Your pension annuity is purchased with the money held within your Pension Fund at the time of retirement.

Normally you are free to purchase the annuity from a provider of your choice.

To talk to one of our advisors, call 0800 3893345 or email info@city-financial.co.uk