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.
Find answers to your most pressing questions about our pension planning services and 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.
Is an annuity better than flexi-access drawdown?
When considering whether an annuity is better than a flexi-access drawdown, it ultimately comes down to your personal financial goals, risk appetite, and lifestyle needs during retirement; annuities provide guaranteed income for life, offering peace of mind and simplicity, while flexi-access drawdown allows for greater control and flexibility over your withdrawals, catering to those who prefer to manage their investments actively and potentially leave a legacy. Understanding the nuances of each option is crucial, and our experienced team is here to help you weigh the benefits and drawbacks tailored to your unique circumstances, ensuring you make a decision that aligns with your future aspirations.
Get Expert Advice Today
Embark on your path to a brighter financial future with a complimentary consultation at Fintegrity. Our dedicated team specialises in personalised financial planning that demystifies complex issues, enabling you to make confident decisions. We are committed to your success. Reach out to us today.
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 dedicated team comprises highly skilled professionals with a wealth of experience in financial planning.
Proactive Planning
We emphasise innovative strategies designed to enhance your investment performance while effectively reducing the burden of taxes.
Transparent Communication
We ensure clear and straightforward communication, keeping you informed every step of the way.
What Our Clients Say
I am so grateful for everything, Neil (including the ongoing advice and support).
Peter
To say the level of service is exceptional would be an understatement. Communication was clear and transparent all the way through with good help and advise and he was always quick to reply to emails or messages throughout the journey.
Would happily recommend to other businesses and people needed financial advice.
Get Expert Advice Today
Embark on your path to a brighter financial future with a complimentary consultation at Fintegrity. Our dedicated team specialises in personalised financial planning that demystifies complex issues, enabling you to make confident decisions. We are committed to your success. Reach out to us today.
Expert financial planning advice is essential for securing your future in a world of financial change. Whether managing investments, planning for retirement, or providing financial security for your family, professional guidance can help you make informed decisions aligned with your goals, giving you the confidence to enjoy life, knowing your financial health is in capable hands.
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Planning
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