What option is right for you?
If you are about to consider your Retirement and Annuity Options then it is important that you consider all the options available to you. Most people would like their annuity to increase over time, to at least keep pace with inflation. The majority of the population are living longer, and therefore your annuity will be paid to you for a longer period. This makes choosing an escalating annuity an important part of your decision making process. Are you aware that by choosing an escalating annuity such as - increasing by RPI ( Retail Price Index) each year, will mean that your starting income |
 |
| Escalating Annuity vs Non Escalating Annuity | gross income |
| Conventional Annuity Escalating by RPI | £3,728 pa |
| Conventional Annuity Escalating by 3% | £3,923 pa |
| Conventional Annuity Escalating by 5% | £2,888 pa |
Conventional Annuity with NO Escalation |
£5,899 pa |
The annuity rates shown above are based on a purchase price of £100,000 with a 5 year guarantee, male age 60, 50% spouses pension( Female age 60) and should be used as a guide only. The actual rate you will receive will be specific to your own circumstances, and dependent upon the additional features you require to be added.
You can clearly see from the above table that your starting income will be severely reduced if you choose any of the escalating options available to you. Each Individuals circumstances are different, and it is important that you seek professional advice before you make your decision. The sort of areas we would consider important before we advise you are:
- Your Age
- Your Gender
- Family medical History
- State of Health
- Fund size
- Other assets you own
- Mortality Tables
If you would like us to help you choose the right Annuity options, please take some time to complete the Annuity Request Form that can be accessed from the link below, and we will help guide you through all your options so you can make the right decision.
