How to buy an annuity
Buying an annuity when you reach retirement
One of the simplest ways to buy an annuity is to use an online annuity planner. You can enter your personal details and compare personalised annuity rates from different providers, before either making a purchase or continuing to look elsewhere. It is possible to buy an annuity from your existing pension provider when you retire, but you could get a better deal by shopping around and taking advantage of what the Government calls the Open Market Option.
The Open Market Option
An annuity will normally provide you with a set level of income for life, and once you make a purchase you won’t usually be able to change your mind. For this reason the Government introduced the Open Market Option, which allows you to shop around at retirement instead of simply taking the rate of income offered by your existing provider. Annuity rates and features will vary considerably between providers, so you could be better off by comparing your options before taking any action.
Should you talk to a financial planner first?
In light of the new pension changes, the Government has recommended that savers seek impartial guidance or consult a regulated financial planner before taking an income from their pension. If you are unsure about your other option or would like to know more about annuities, why not book a free telephone consultation with one of our expert financial planners today?
Book a free telephone consultation
Download one of our free pension guides
The decision to access your pension is an important one and will affect your income and possibly your standard of living for years to come. Therefore we recommend that before any decision is made you receive regulated financial advice or get free guidance from Pension Wise. Find out more about Pension Wise.
*This is a restricted service and not a whole of market solution. You may be able to find a better rate by looking elsewhere or contacting providers directly. Just Retirement Solutions will use your information to provide the annuity comparison service to you for the purpose of obtaining quotes from annuity providers.