Don’t risk losing out on an increase in your pension income

Capitalise on your pension-income options to help you achieve the best possible pension income

Making the most of your pension savings has never been more important. The market is presently undergoing a resurgence with annuity rates increasing by more than 10%1 in the last 3 months, compared to what you could have achieved in August. Therefore, after the uncertainty which followed the Brexit vote and the US presidential election, now could be a good time to access your pension income, as you may be able to secure a higher income. However, there are no guarantees annuity rates will continue to rise in the future. Although, additional options are available to pension savers; a pension annuity is still the only way to turn your pension savings into a regular, guaranteed income for life, for you and, if required, a spouse. Many people choose a lifetime annuity because their income is confirmed upfront, and will continue to be paid to you regardless of how long you live. Therefore, the longer you live, the more value you are likely to secure from an annuity; which for many provides peace of mind, as they can be safe in the knowledge their pension income won’t run out before they pass away. However, it’s worth noting that the annuity rate offered by your existing provider may not be the best annuity rate from the market, so it is vital you shop around to get the most income from your annuity. The FCA has recently reported that 60% of annuity customers failed to switch providers when they bought an annuity, despite an estimated 80% having a better deal available to them. Comparing the whole of the annuity market through regulated, independent and impartial companies, such as Age Partnership, could provide you with access to higher annuity rates and therefore increased income for life.

What’s more, certain health and lifestyle factors could help you qualify for up to 40% more

pension income2 through an enhanced annuity, as these factors aren’t usually considered in quotes provided by your current provider. Though not an exhaustive list by any means, some examples of conditions or factors that may qualify you for an enhanced annuity are: Smoking Diabetes High blood pressure Heart disease Cancer Kidney failure Once you’ve obtained an annuity quote, you may wish to consider securing your annuity income now, as the terms are only typically guaranteed for 2-4 weeks. If you require more time to decide what to do, you’d need a re-quote and this rate may vary from the rate you were previously offered. Talking to an experienced specialist or Financial Advisor is imperative before you make your decision. Age Partnership can help take the stress and worry out of the process, too. Should you be interested in an annuity, an advisor or specialist can provide all the information you need to proceed, tailored to your personal circumstances. Alternatively, should you wish to retain flexibility around changing annuity rates, they can discuss your requirements and offer a range of different retirement solutions.