Below you will find answers to some of the most commonly asked questions in relation to annuity advice. If you do not find the answer to your question here please complete our annuity enquiry form or use the contact details to the right.

• When should I purchase my annuity?
• Can I combine all my pension policies together to buy one annuity?
• How secure is the annuity?
• Will I qualify for an impaired life annuity?
• Why should I use an advisor and not do it myself?

When should I buy my annuity?

We do not believe that anyone can predict the future with sufficient accuracy to be able to identify when it may be the optimum time to buy. However, in the past decade, it has generally been the case that delaying an annuity purchase has resulted in a loss of income; not only because the general trend for annuity rates is downwards, due to increasing life expectancy, but also because of the income sacrificed during the delay period.

When contemplating whether to delay or not, you should consider the following:

• How will your invested pension fund perform during the delay period? Are you going to leave it fully equity-linked during this period, or will you move your pension fund investments into safer secure areas, that generally have lower performance, in order to avoid stock market fluctuations immediately prior to retirement?
• What will annuity rates do? Will they go up or down during this period?
• How much income will you lose by not drawing any income at all?

Can I combine all my pension policies together to buy one annuity?

This is normally possible, depending on the actual type of policies you hold. However, current legislation will determine the feasibility of this. Your recommended annuity adviser will be able to tell you if this is possible.

How secure is the annuity?

In other words, “what happens to my annuity income if the insurance company goes bust?”

The Financial Services Compensation Scheme (FSCS) exists to protect people who take out any sort of regulated UK insurance or investment contract, and annuities fall under the definition of a long term insurance contracts.

The FSCS would initially work with the insolvency practitioner to try and arrange continuity of cover for policyholders either by transferring the business to another provider, or by getting another provider to issue substitute policies at the level of ninety per cent of the benefits immediately prior to the insolvency.

However, if this could not be done, the FSCS would instead pay out compensation to policyholders with eligible claims in accordance with the usual insurance sub-scheme limits (i.e. ninety per cent of the claim with no upper limit).

 More detail is available on the FSCS website at

http://www.fscs.org.uk/what-we-cover/eligibility-rules/compensation-limits/insurance-limits/

 Will I qualify for an impaired life annuity?

This often cannot be determined until the annuity providers are in receipt of all the necessary medical evidence. There are some cases that will be obviously eligible for an impaired life annuity, but the ultimate decision rests with the insurance company concerned, and each case is assessed on its own merits. Impaired life annuities are only offered where life expectancy (not the quality of life) is seriously reduced.

Why should I use the services of an adviser and not do it myself?

Our recommended advisers specialise in retirement income. Moreover, no single annuity provider in the entire UK provides every type of annuity product available. Our advisers know which annuity providers are able to offer a particular product or variation, and which will offer you the highest income. And, just as important, they are experienced in handling the reams of administration that are inherent with annuity purchase.

Annuity providers update our recommended advisers regularly with annuity rate changes.

The services of our recommended advisers will remove all the worry and frustration involved in the process and leave you feeling satisfied that you have obtained the best possible income from your pension.

It pays to take advice if you want to know more about the benefits of each type of annuity and the alternatives.

Call  0845 123 5590  or  01325 487192