The day has finally arrived; you’re going to be retiring soon. You probably have a calendar on the wall were you are counting down your last working days. The year and certainly the 6 months pre your retirement is very important. You will hear from the company that your pension is with (your pension provider) giving details of what you can expect to receive as an income in your retirement.
At Hughes Financial Services we are committed to helping you maximise your retirement income.
Simply put an annuity is a one off purchase that determines your income for the rest of your life. They are as individual as you are. They have features that can be added and tailored to your specific needs. Each feature or option has an effect on the income you receive so it’s important to consider your spouse or dependents arrangements.
Open Market Option
If you remember nothing else please remember this. Don’t accept the first offer and shop around. You have worked hard to save into your pension fund and you owe it to yourself to use your open market option to get the most competitive rate. It can boost your income.
Impaired Life or Enhanced Annuities
Did you know when purchasing your annuity it’s about one of the only times in financial product shopping that it pays to be in ill health. Being overweight, a smoker, being on certain medications to having diabetes are a few of the common complaints that insurance companies consider will reduce your life expectancy. By completing a medical questionnaire which is sent to the companies underwriting department will check eligibility for a higher rate.
You also have the option to delay your annuity purchase or take your benefits in stages by purchasing a fixed term annuity or phased retirement. Your circumstances change throughout your lifetime and insurance companies are realising this could be the same in retirement.
For more information give us a call on 028 9181 5928 or drop us an e-mail.