Information on how you should boost your pension income
One thing to think about is what you should do about your retirement finances. A lot of people ignore the issue of pensions because they think they don't have the will power, information or assistance they need to make the right decision.
Not addressing the issue is on balance,
probably the very worse option as it may result in you losing potential retirement income. The primary task is to work out what is being put forward from your current insurance company. Once this is achieved you can they say for certain which choices will suit you best.
You have up to half a dozen people you could speak to about your pensionable income. In the main the primary choices are as follows... annuity providers, IFA's and pension specialists. As to which one you choose, well that will all depend on.... the amount of cash you have accumulated and whether you think you want advice you have to pay for. Broadly speaking, anyone with a fund under 10,000 GBP will not speak to Independent Financial Advisors as they can charge over and above 190 GBP per hour for their advice.
Should you still be undecided about who to deal with then it is well worth knowing that a traditional annuity broker can give you what you need to know absolutely free! This is due to the fact that they take a cut from the annuity provider when you buy an annuity. So if you commission an IFA to work with you on this you could well find you are paying again when they take a commission from your annuity deal. Another thing you must also be informed of is that some IFA's have special partners and may not get you the best deal on the market.
You now could be secretly saying to yourself.... why do I need to use this 'Open Market' to get the highest pension? Well, in all honesty the solution is so, so simple... if you fail to use the OMO option, you could lose a massive amount of income. The aggregate amount of lost money could even stretch as far as 42% or even higher. It won't surprise you one jot then when you discover that many annuitants are rue the fact that they didn't compare annuity companies for the best deal.
The central reason why annuitants miss a huge jump is income is that they failed to discover the benefits of an enhanced annuity. These are offered to people who have an illness or lifestyle choice which impacts on their life expectancy. A normal example of this would be that of boozing and smoking on a regular basis. There are several medical conditions which allow for enhancements including.. Diabetes type 2, heart attack and brachycardia.
You only have one chance to ensure you get the best annuity on the market, as an annuitant cannot enact changes once it is agreed. This signifies that it is vital that you weigh up who has the best annuity deal for you.
One final note of advice, don't discard the fact that you are not obliged to pay for financial advice if you don't need it - use an annuity broker if needs be.
