As the market becomes more and more uncertain, many UK homeowners and consumers across the board are starting to look at their options differently. Many are wondering whether or not the UK annuity is really worth it. Savers have really taken a beating during this economy, and there’s really no getting around that either.
But there is something special about the UK annuity. Turning a lump sum into lifetime income is very important. People that say you can’t live on the annuity payments are looking at things in the short term. This is true — you can’t. But what if you paired it with say, permanent life insurance that had dividends to pay out? If you combine multiple sources of income, you could build a really nice retirement. The key here is to let go of the notion that one source has to cover everything. That isn’t going to let you really take your retirement plan to the next level.
Even though there are fees associated with annuities, they’re really not as expensive as you might imagine. Hunting for an annuity is important. Once you start receiving an income, you can’t just go and change your mind because you found a better provider.
One thing that people don’t take into consideration is their health. This is ironically the one time where not being in great health can actually increase your annuity. Granted, you want to be in good shape to enjoy the money, but if you do have existing health problems, it’s important to get these noted. The annuity is really about providing you with money, but it’s also going to be about the company making some money based on when it is likely you will pass away.
This point cannot be stressed enough — you need to do some homework on annuities. Not only do you need to read about how they work, but you need to look around for multiple providers. Don’t go to the first annuity company that you find. That would just be too easy. They need to sell you on what’s really going to benefit you in the long run. Let an adviser work things out with you.
You have a lot of things that you can do with your pension. An annuity is really just one of those things. Everyone will have different goals that they really want to meet, so why should your situation be any different? Check it out for yourself today, you really won’t regret it at all.