Very little people know that about GAR better known as guaranteed annuity rates. These mean that whoever is eligible would get the guaranteed rate even if the market rate proves to be different. In the latest circumstances of annuity rates going down since the 2009, the deal is more than tempting.
In the largest simplification, GAR could be eligible to anyone who had a private pension set up before the late 1980s. It is usually provided on a single life and a five year minimum payment guarantee.
According to one of the leading providers, the typical guaranteed annuity rate is £111.11 pension per £1,000 cash for males aged 65 and above. When it comes to females aged 60 and above the amount £90.91 per £1.000 cash.
Specific brochures and leaflets are usually distributed six months and six weeks before one is due to retire. This obviously will vary depending on the pension provider, type of contract signed, age and sex. It is also possible to enquire if your pension has a GAR with the provider.
While looking for the right annuity rate it is worth checking whether one could claim on a GAR as in the long run it could provide a higher income than a standard other annuity rate.
There are plenty of providers to choose from; however the bigger brand doesn’t necessarily mean better deals. Annuity Marketplace is one of the widely trusted companies that has access to the whole of the market place and could investigate if your pension holds a GAR and how this compares to current annuity rates.
With a free and no obligation enquiry there information is easily accessible, for anyone wishing to start planning their future sooner, rather than later to avoid any regrets.