Download our Annuities Guide

Advice Rooms was created as a space for individuals to receive financial advice regarding any area of their financial and/or retirement planning. Today’s world makes everything seem impossibly complex, with companies leaving a mind field of options when planning your future finances.

Our advisors will help you determine whether an annuity is the most suitable route and what benefits you should consider so that you can maximise your retirement.

What is an annuity?

An annuity is a guaranteed income that you purchase. Once paid, it can’t be changed and is payable for the rest of your life, no matter how long you live.

How do I know if an annuity is the best option for me?

Several factors must be considered when determining if an annuity is right for you. These include your current financial situation, your retirement aspirations, and your health and are taken into account when using an annuity calculator.

How does an annuity work?

Additionally, it’s essential to understand the different types of annuities and their features, such as the annuity’s guarantee, payout options, and any fees or charges associated with the product.

We recommend that you speak to one of our advisors to evaluate whether an annuity would be a suitable addition to your overall circumstances.

An annuity may be suitable for you if you want:

  • A regular income is payable for your lifetime. With the option for it to increase yearly, either by a fixed percentage or in line with the Retail Price Index (RPI), to help protect it from the effect of inflation.
  • The option for your dependant to receive a regular income if you die before they do.
  • To avoid your pension pot being subject to investment risk.
  • A product that could pay more income if you have certain lifestyle risks or medical conditions.

An annuity may not be suitable for you if you want:

  • To withdraw cash amounts from your pension pot as and when you choose.
  • Flexibility to change any of the options you initially choose.
  • Your income to vary depending on investment conditions.
  • To build up a pension pot by making further contributions.