Every one of us has the dream of retiring and leading a peaceful life afterwards where we can just relax and do all the things which we did not have time for before. Annuities are also an important part of our retirement and they are more important than they have ever been before because of the unpredictable economic condition.
The market is full of news that the annuity rates are on a decline and retired people will get a less pension income than they deserve. This is a worrying thing but there are some simple things you can do in order to get the best annuity rates in today’s tough market.
This is a simple rule of shopping and it also applies for when applying for annuity rates. You always need to shop around and browse through different financial institutions and get quotes before you make a final decision of purchasing an annuity. Don’t opt for the first quote you get from your pension provider, browse through different options because you can always get back to the first offer if you find out that the first one was actually offering the best deal.
A lot of people are not aware of this but if you declare your state of health you might get a higher annuity rate. If you are a smoker or have a health condition or are taking any sort of medications. You are likely to get an enhanced annuity rate if the provider knows that you have a lower life expectancy.
Locate old pension schemes that you might have enrolled for in the past. If you have changed quite a lot of jobs in the past then it can be quite difficult for you to track down any and all of your schemes and the amount you paid into them. Make every effort to track them all down or you could end up losing out on that amount.
In the past, men used to get better annuity rates as compared to women and the sole reason for this kind of difference was because males have lower life expectancy and in return they enjoyed better annuity rates but that has been put to an end after a UK law which states that there will be no difference in annuity rates based on gender.
Choosing the right income option for your retirement is one of the most important financial decisions of your lives so make sure that you do proper research and hunt down the provider that gives the best annuity rates.