Maximising Income at Retirement

Helping you ‘shop around’ to maximise your income in retirement

At retirement, the majority of people in the UK use their accumulated pension fund to buy what is known as a ‘lifetime annuity’. This is a secure income, paid to you for life by an insurance company. You can choose to have various features included in your annuity, such as a guarantee period, an income that will continue to your spouse, partner or dependants should you die before them, or an income that increases throughout your life. There are different costs attached to each option and, once your annuity has been purchased, the decisions you have made will apply for life. It is therefore vital to ensure you are making the right choices for your individual circumstances.

Many people automatically take the income offered to them at retirement from the pension company they have saved with and they risk losing substantial amounts of money by doing so. We all have a legal right to take what is known as the ‘open market option’. This is your right to purchase your annuity from an insurance company of your choosing. The difference between the best and worst standard annuity rate can be as much as 20%. That’s 20% more income every year for the rest of your life. If you are a smoker, or have certain health conditions, you may be eligible for an ‘enhanced annuity’ or ‘impaired life annuity’ – both of which can significantly improve the income you will ultimately receive.

To help our clients, we have developed a dedicated online annuity service that outlines your options, helps you consider different features and their associated costs, and finds the best available rate for your circumstances and requirements. We then help you with any paperwork, remain on hand to provide support throughout the retirement process, and ensure your annuity is set up correctly and efficiently.

A pension is a long-term investment. The fund value may fluctuate and can go down.

Eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.