Get the best annuity rates from an annuity supermarket

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When you start your search for the best annuity rates one of the places you will need to visit is an annuity supermarket. Shopping around on the open market will mean comparing providers and this is where an annuity supermarket can help.

The open market option was introduced to allow you to take your pension pot from your existing company and see if another provider could offer you better annuity rates. This was an opportunity for specialist annuity supermarkets to spring up and offer a bespoke service to those retirees shopping around.

There is a massive difference between the annuity rates of the best and worst providers for any given circumstances, as an example: For a male age 65 retiring on a single life level pension with no other options and a fund of 100,000 after tax-free cash; there are 9 annuity providers that will quote for this annuity, the best annuity rate is 6,674 per annum and the worst is 5713 per annum which is 961 (16.8%) difference each year.

An annuity supermarket will do the shopping around for you. They have access to all the annuity providers including the ones that do not sell direct to the public. After conducting a short questionnaire with you to establish your requirements they will research the whole of the annuity market and find the provider that pays the highest annuity rates.

Another thing the annuity supermarket will do is check if you may be entitled to enhanced annuity rates; these are rates that are available to those that have lifestyle or medical conditions that affect life expectancy. If life expectancy is affected then the provider will not have to pay the annuity for as long as a standard life therefore they can give higher annuity rates. We have already seen the effect of choosing the wrong provider and how it can affect your income. Enhanced annuity rates could take the income increase to around 30% with mild medical conditions or smoker rates.

Use an annuity supermarket to get you the best annuity rates from the whole of the market. You only get once chance to purchase an annuity so you need to make sure you make the right choices.

Article Source: http://depositarticles.com/

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