Deciding what to do with your pension in retirement is one of the most important financial decisions of your lifetime.
When you are approaching retirement, you can choose a number of pension options. One of these is buying an annuity.
Depending on the individual, their age, and their pension scheme, different types of pension annuity and different types of annuity provider will be most suitable.
When choosing a pension annuity, the individual needs to consider their retirement needs and the details of their pension scheme.
What is a pension annuity?
A pension annuity is a product sold when a person retires that provides a retirement income in the form of regular payments for the rest of the annuity holders life.
Choosing the right annuity can significantly change your retirement income and therefore your financial security in old age.
How do I choose a pension annuity?
Choosing a pension annuity is a decision that those approaching retirement should consider.
However, annuities take several forms and are offered by a wide variety of different providers. On retirement, most people convert their pension fund into a guaranteed income annuity.
What are the other options?
There are several other options when it comes to retirement and what to do with your pension. For instance, some people choose unsecured pensions, Investment Linked Annuities, Enhanced Annuities, Impaired Annuities, With-profits Annuities or unit-linked annuities.
Other pension scheme holders take their pension as a lump sum, sometimes called a triviality. There are also alternatives to buying an annuity.
How do I find out more about annuities?
Please click here to read the PensionForecast.com guide to pension annuities.
Because some of the terms relating to this product are confusing, please also visit our glossary of terms for a full explanation of the jargon.