Annuities

An annuity is still the only product that will give you a guaranteed income for life paid regularly to you for the whole of your retirement.

You can also enjoy:

• The reassurance of knowing exactly how much you can expect in each payment
• Peace of mind that your income will continue exactly how you have set it up to – no matter what the stock market does
• Flexibility to set up your annuity to meet your needs, whether that’s providing for loved ones or keeping up with inflation
• The ability to take up to 25% of the pension fund as tax-free cash

Tax-free cash

At the point you decide to start taking your pension fund as income, you can choose to take up to 25% of your fund as a one-off payment, free of tax. Of course, you don’t have to take any at all if you prefer.

With some providers you can choose to take additional cash lump sums, however anything above this will be taxed at your marginal rate. But beware, the more you take out at this stage, the less you’ll receive in your regular payments.

Health and lifestyle factors considered

Current and past health conditions and your lifestyle, as well as those of your dependants, could significantly increase your annuity income. By giving HUB Financial Solutions as much detail as you can, from your postcode through to your lifestyle and medical history, they could help you achieve more income during your retirement.

Protection from inflation

You can choose for your income to remain at the same amount, as it was the day you set up the plan. Or, you can choose for it to increase annually to offset the effects of inflation, however this will result in a lower starting income.

Choice of payment frequency

You can choose how often you want your annuity income to be paid. For example, you may want to receive it monthly or annually, or perhaps every six months? You can also choose whether you want to be paid in advance or arrears.

There may have been other times in your life where you may not have wanted to disclose your health conditions or lifestyle factors for fear of higher premiums. With an annuity it’s different. By telling HUB Financial Solutions about your health and lifestyle you could be entitled to more money in retirement, particularly if you’ve been diagnosed with a serious medical condition, or have had one in the past.

They’ll ask you some health and lifestyle questions which will enable them to provide you with a personalised annuity quote. These include:

• Are you a smoker?
• Do you have high cholesterol?
• Are you overweight?
• Do you have serious or life-threatening medical conditions?
• Do you have raised blood pressure?
• Have you ever been hospitalised?

With an annuity you have the option to protect your money and pass it on to loved ones, following your death. 

You now have more pension options than ever before which can be a bit daunting. So, if you’re unsure what to do with your pension savings, go online and visit Pension Wise, a free and impartial government service that offers guidance to people approaching retirement. You can also arrange a phone or face-to-face appointment with a pension specialist.

Remember, you don’t have to buy your annuity from the company that you’ve got your pension savings with. There may be a better deal elsewhere, so it could pay to shop around. 

In fact, the Financial Conduct Authority (the industry regulator) have put in place 'information prompts' to appear alongside every annuity quote – to encourage consumers to shop around for the best annuity rates available, and help people be better informed.

HUB Financial Solution’s handy online tool is designed to help you compare annuities and guarantee your income for life.

Compare annuities with their Online Annuity Planner today