Annuities are designed to secure regular income during your retirement and are seen as a way to provide certainty of income in the future. 

It is recommended you seek expert assistance when deciding whether this option is right for you and the specialists at Equilibrium can help to ensure this decision is a simple one. 

Find out more about our services and how we can assist you with all matters retirement planning and annuities by getting in touch today. With offices in Wilmslow and Chester, our team is here to advise on the right annuity for you. For more information, call us on 0808 156 1176 or complete our online enquiry form and we will give you a call back to discuss in more detail.

What is an annuity?

An annuity is a financial product that is favoured by many people due to the fact it is able to provide a regular income once you choose to retire. Another of its advantages is that it enables you to build in a continuing income to a surviving dependent - including a husband or wife - should you pass away.

Insurance companies provide annuities and there are many different types available. It can be difficult to pick which option is the best for you - each includes various options for you to choose from - and it is therefore advisable that you seek expert help to make sure you are in the best possible position to make your choice.

Despite the different types available, an annuity will usually fall under one of the following:

  • A lifetime annuity

  • A temporary annuity

Lifetime annuity

A lifetime annuity - also sometimes referred to as a compulsory purchase annuity or, simply, an annuity - is the most common form or annuity and is set up to ensure you benefit from a steady income stream for the rest of your life.

You will receive an annuity rate that is based on the average life expectancy for people your age, coupled with the investment returns for the low risk investments into which your chosen insurance company will invest your money.

Temporary annuity

A temporary annuity will only pay income for a fixed term. They are less common than lifetime annuities but are favoured by some people in certain circumstances, such as if you require income immediately but do not feel you are in a position to commit to a lifetime annuity.

Due to the nature of temporary annuities, they are likely to offer a higher annuity rate, meaning you will be required to use less of your pension pot to reach a certain level of income.

Other types of annuity

Among the many types of annuity available, some of the more common include:

  • Enhanced annuities - A type of lifetime annuity that can offer a higher annuity rate, sometimes provided if you smoke, are overweight or meet other criteria suggesting your life expectancy may be shortened

  • Investment-linked annuities - A lifetime annuity in which some of the income is associated to the performance of your investments

  • Impaired life annuities - A lifetime annuity that may be selected for people with reduced life expectancy due to a medical condition

  • Purchased life annuities - Known as PLAs, these are purchased with money that is not in your pension pot

  • Postcode annuities - A lifetime annuity with the annuity rate based on the region in which you live

The number of annuity options out there means that expert financial help is highly recommended. At Equilibrium, we can provide the guidance you need to make sure your choices are best suited to ensuring you are able to meet your objectives in retirement.

Contact Us Today

We help clients from across the North West, including Manchester and Cheshire. Get in touch with the specialists at Equilibrium today. Doing so is easy; simply call us on 0808 156 1176 or enable us to contact you by leaving your details via our online enquiry form