Annuity
An annuity is a reliable insurance policy designed to provide you with a guaranteed pension for life, effectively eliminating investment risk. You can enhance your plan with optional features such as an increasing pension, a spouse’s pension that continues payments to your partner after your passing, or a guaranteed minimum payment period, ensuring greater financial peace of mind for you and your loved ones.
The optimal annuity rate is influenced by several factors, including the total value of your pension savings, your age, whether you prefer a fixed or increasing pension, your desire for continued payments to your spouse after your passing, and your current state of health. Please remember that you are not limited to purchasing an annuity from your existing pension provider, as we can explore various options to secure the most favourable annuity rate for you.
Why Choose Fintegrity
Our services are designed to provide peace of mind and financial security for you and your loved ones.
Personalised Approach
We tailor our strategies to meet your unique financial situation and goals.
Experienced Advisors
Our team consists of seasoned professionals with extensive knowledge of Inheritance Tax laws.
Proactive Planning
We focus on forward-thinking strategies to mitigate the impact of tax.
Transparent Communication
We ensure clear and straightforward communication, keeping you informed every step of the way.
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Ready to secure your financial future and protect your loved ones from unnecessary taxes? Contact Fintegrity IFA for a personalized consultation. Our experts are here to guide you through every step of the process.
The information provided in these FAQs does not constitute professional financial advice. We strongly recommend that you consult a professional adviser before proceeding with a financial transaction.
What's the difference between a pension and an annuity?
Is it worth buying a pension annuity?
An annuity provides a guaranteed income for a specified fixed term or the rest of your life, allowing you to exchange some or all of your pension savings for this regular income. However, there are two notable drawbacks to consider: first, annuities offer little flexibility, meaning if your financial situation changes, you cannot adjust the amount of your pension; second, current annuity rates are low compared to inflation, which means that when you purchase an annuity, you are essentially locking into the existing rates.
What happens to the annuity after death?
What are the pros and cons of a pension annuity?
The advantages of a pension annuity include the absence of investment risk, ensuring that your income is guaranteed for life, the ability to withdraw up to 25 percent of your pension pot as a tax-free cash lump sum before purchasing an annuity with the remaining balance, and the peace of mind that comes from knowing your annuity income is fully protected by the Financial Services Compensation Scheme even if the insurance company fails. However, there are notable downsides, such as the requirement to pay income tax on your annuity income, the lack of flexibility since once you purchase an annuity, it cannot be altered even if your financial situation changes, a limited timeframe to reconsider your decision typically set at 30 days, and the fact that your annuity cannot be passed on to your heirs upon your death unless you have opted for a guarantee or a spousal pension.
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Ready to secure your financial future and protect your loved ones from unnecessary taxes? Contact Fintegrity IFA for a personalized consultation. Our experts are here to guide you through every step of the process.
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Planning
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