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UK Annuities: FSA REGULATED SITES • QUALIFIED, TRUSTWORTHY ANNUITY ADVICE

Annuities Comparison

Just tap in a few details to get an annuities comparison or simply ask a question. You details will be passed on to the Annuity Clearing House, who will contact you to deal with your enquiry and may be able to find you a much better annuity deal...
Visit Annuities Comparison FSA Number 503004

Open Annuities

You could increase your annuity by thousands. Make sure you recognise the best annuity advice when you get it. The more information about annuities you have, the more able you will be to recognise the best annuity advice when you receive it.
Visit Open Annuities FSA Number 501272

Annuity Base

Free UK Annuity Database Enquiries. Using specialist annuity industry search software, an FSA registered independent financial adviser will query top annuity and annuity alternative providers' databases to help you compare and choose which one is the best for you.
Visit Annuity Base FSA Number 501272

Annuity Key

Annuity Key is an initiative of The PRG Partnership (London), part of one of the UK's largest financial advice groups. The PRG Partnership group operate nationwide, providing expert advice to 1000s of individuals and businesses every year.
Visit Annuity Key FSA Number 512494

Simple Annuities

Finding an annuity doesn't have to be difficult. Pension annuity retirement finance experts with vast experience of annuities are waiting to help you. Compare pension annuities and annuity alternatives now.
Visit Simple Annuities FSA Number 483817

Pension Annuities Plus

Your annuity income may increase if you have had certain health problems such as high blood pressure, high cholesterol or asthma? This is also true for smokers and for those who have worked in certain occupations. Get pension annuity comparisons now.
Visit Pension Annuities Plus FSA Number 483817

The Enhanced Annuity

Specialists in enhanced annuities. It is estimated that up to 40% of the UK population could boost their pension annuity income with an "enhanced annuity".
Visit The Enhanced Annuity FSA Number 483817

Smokers Annuities

Your lifespan as a smoker and your annuity options. We're sorry to be blunt, but you most likely already know that smokers, in general, have shorter lifespans than non-smokers. Of course annuity providers are well aware of this unfortunate fact of life. Increase your annuity now.
Visit Smokers Annuities FSA Number 483817

Annuity Answers

Why should the pension annuity buyer beware and why do so many retirees ignore a much bigger annuity income? Compare annuities now.
Visit Annuity Answers FSA Number 483817

Annuity Link

As the website name suggests, Annuity Link links you to a huge amount of information about annuities and annuity rates. It's all contained within this one website.
Visit Annuity Link FSA Number 137914

Annuity Pathway

Your simple pension annuity journey. How you might take the wrong annuity route and loose the annuity income that's rightfully yours.
Visit Annuity Pathway FSA Number 460094

Just One Bite Annuities

How a pension annuity will affect your life. You'll only get one bite of the annuity apple. Once you buy an annuity, there's no going back.
Visit Just One Bite Annuities FSA Number 460094

Pension Annuity Plan

Compare pension annuities and their alternatives. Get thorough advice in choosing the right annuity plan.
Visit Pension Annuity Plan FSA Number 460094

Pension Annuity Planner

We'll increase your standard pension annuity through enhanced annuities.
Visit Pension Annuity Planner FSA Number 460094

The Female Annuity

A one-to-one annuity comparison website aimed at women. Compare annuities for women and their alternatives.
Visit The Female Annuity FSA Number 460094

Annuities Extra

Pension annuities for those of us who are not in the best of health. If you've a health problem, no matter how small or insignificant you think it is, you'll stand an increased chance of a higher annuity income.
Visit Annuities Extra FSA Number 150427

What is a pension annuity?

An annuity is an arrangement where you make a lump-sum investment and from this investment you will receive a guaranteed level of income for your retirement. Most annuities are bought using pension funds held in money purchase pension schemes.

To reiterate, an annuity converts a savings fund into income and that income will be paid to you for the remainder of your life.

Although an annuity is payable for your lifetime after purchase, it is possible to select a fixed period if purchasing an annuity with cash as opposed to pension funds.

Examples of this type of "Compulsory Purchase Annuity" are conventional annuities, with profit annuities and unit linked, or 3rd way annuities. Annuities which are purchased from your savings, i.e. not from a pension scheme, are referred to as "Purchase Life Annuities" or "Immediate Vesting Annuities".

Retirees are normally entitled to take up to 25 per cent of their pension fund as tax free cash.

You can buy an annuity if you have one of the following pension types:

 1. A Personal Pension
 2. A Stakeholder Pension
 3. Retirement Annuity Contract (RAC)
 3. Free Standing Additional Voluntary Contribution Schemes (FSAVCs)
 5. Most Additional Voluntary Contribution Schemes (AVCs)
 6. Occupational Money Purchase Schemes
 7. Section 32 Policy (Buyout Bond)

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Types of Annuity

A wide range of options can be selected when choosing an annuity plan. The most widely used options are as follows:

Minimum Term

Annuity income is guaranteed to be paid until the annuitant (annuity holder) dies, but it can also be modified to include any of the following options:

• 5 year guarantee - The annuity ceases at death of annuity holder, or after 5 years, whichever is longer

• 10 year guarantee - The annuity ceases at death of annuity holder, or after 10 years, whichever is longer

• Joint life annuity - The annuity ceases on the death of the 2nd of two named annuity holders

Spouse Benefits

Your spouse, partner or dependants can be protected after you die by choosing one of the following:

• Reduction to half benefit,
• reduction to two thirds benefit or
• full benefit

The annuity is adjusted to the new level at the death of the annuitant or, if selected, at the end of the guarantee period. It continues until the death of the spouse, partner or dependants.

Annuity Escalation

An annuity can either be paid at a fixed level or can include an escalation at 3 percent, 5 percent, or at the RPI percentage (the annual increase in the retail price index). You can thus choose to compensate for any inflationary effects inflicted on your income. However, bear in mind that your initial income level will be reduced if you choose escalation.

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Purchased Life Annuity

A purchased life annuity is an annuity bought with your own funds as opposed to from a money-purchase pension fund. It operates in a similar way to a compulsory purchase annuity, but it does have tax advantages.

The entire pension that you receive from a compulsory purchase annuity is treated as taxable income in the same way as income from normal employment. However, when you buy a purchased life annuity, that part of the annuity income, which is calculated as capital repayment to you, is free of tax. Only that part of your annuity income that is interest paid on the investment is taxable.

With similar annuity rates, the effect of this tax treatment of a purchased life annuity, for a basic-rate tax payer from a £200,000 investment, could increase their net income by approximately £200 per month.

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The Open Market Option

The Open Market Option allows retirees to shop around for different ways to convert their pension funds into an annuity. They don't have to just accept the rate offered by their pension provider.

When a pension fund reaches maturity, pension providers advise their customers of the fund value and give general information about annuities and the expected level of annuity income.

They are then entitled to use their Open Market Option which allows them to transfer the pension fund value to another annuity provider of their choosing. This enables them to take advantage of a higher annuity income which may be available from a different provider. Annuities are usually provided by life insurance companies.

The Financial Services Authority (FSA) say "You may be able to get a better annuity rate by shopping around. You should check what your provider is offering you and then compare this with the annuities on offer through the open market."

However, many who retire still don't use their Open Market Option. They are not aware of the benefits of doing so, or they do not actually realise that they have an option.

According to the professional pensions publication, DC World, it's estimated that over £1 billion in pension income was lost by failure to get proper advice on the best selling annuity.

To make the most of the Open Market Option it is important that you speak to an Independent Financial Adviser who'll explain the different retirement options available.

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Enhanced Annuities / Impaired Annuities

If you are in advanced years, a smoker or are in/have been in poor health, you may be able to increase your retirement income.

The reason why some annuities, called "Enhanced Annuities" or "Impaired Annuities", pay more than basic annuities is because those that are in better health tend to live longer than the average. The annuity providers therefore have to pay out more over the healthier people's retirement lifetime so the yearly income is usually lower. This is why it's very important to report any medical condition, no matter how small you think it is, to your adviser. It may result in a higher rate of return.

You may regard yourself to be relatively fit and therefore not be eligible for an enhanced annuity, but the reality is often different. Some think they have to suffer from a serious medical condition such as cancer, heart disease or stroke to receive extra income in retirement - this is not always the case. A seemingly minor condition or complaint may significantly increase your annual retirement income.

In fact, if you've one of nearly 1500 health conditions, such as a digestive complaint, being overweight, high cholesterol, asthma, high blood pressure, diabetes, heart problems etc., you must ensure you mention it to your annuity adviser.

Additionally, higher incomes are often achieved by:

• Smokers of 10 or more manufactured cigarettes per day
• Those who have retired from certain occupations, especially blue collar workers
• Those who live in certain areas of the country

It's thought that up to 40 percent of the UK's population could increase their annuity income with an enhanced annuity. If you believe that you fit that category, it's very important that you tell our team of annuity specialists about it. You will stand a much improved chance of a higher income for the rest of your life.

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Annuities for Smokers

If you smoke, pension annuity providers factor in that you are likely to die sooner than the average person that doesn't smoke. Therefore they assume that they will not be paying you your income for as long a period. A presumed shorter lifespan means that being a smoker can boost the amount of income you will receive from your annuity.

So, as a smoker, you may already be eligible to receive a higher annuity income, but also, dependent on your age, you may receive further enhanced rates of up to 30 percent above the standard level annuity rates.

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Unsecured Pension/Income Drawdown

It's crucial that you obtain the appropriate level of advice before committing to this type of investment arrangement.

You can choose an unsecured pension (sometimes known as income drawdown) as an alternative to an immediate annuity purchase.

With an unsecured pension (sometimes also known as income drawdown or phased retirement), you can first take the tax free cash element, and the balance would remain in your selected pension fund. However, there is an exception to this in the case of phased drawdown, where the tax free cash and income requirements can be combined.

You can now drawdown a chosen amount of income between £0 and the maximum calculated single person's annuity value for the remaining fund. The residual fund then remains invested. Should you chose to, the residual fund can be converted into an annuity in the future, when you choose to end the income drawdown arrangement.

Unsecured pensions are definitely not a suitable option for all. This type of scheme is more suited to those who have a relatively large pension fund, usually over £100,000. As your investment includes equity based funds, it has the highest investment risk. This may be more suitable to people wishing to defer taking their annuity or have another source of income such as a company pension.

The income you take from the fund must be reviewed every three years to ensure that it's in line with HM Revenue and Customs' limits.

The disadvantage with income drawdown could be that if at the start you were drawing down the maximum income from your fund, you may have a lower amount left at the end (depending on growth) with which to buy your annuity. You must also remember that your pension fund may fall as well as rise.

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Phased Drawdown

Phased income drawdown allows you to draw an income from part of the pension fund leaving the rest intact to grow. You can take the tax free cash at intervals instead of in one go. If the remaining fund grows, it will mean that you could have a larger tax-free lump sum than taking it all at once. This may be more suited for those who are still working and paying tax or maybe somebody working part time who doesn't necessarily need their maximum income.

Phased income drawdown allows you to vary the amount of income that you receive. This gives you some flexibility if your circumstances change. This also has an added advantage that part of your pension fund has the potential to carry on growing in a tax favoured environment.

Phased retirement is suitable for those people who wish to vary their income from year to year, wish to benefit from pension fund increases and accept the risks if it falls, have alternative sources of income and do not need the security of a conventional annuity, wish to maximise the benefits that their family receive.

Phased retirement does not guarantee income and carries greater risks than conventional annuities. Due to the possible investment risks involved, it's essential that you obtain the appropriate level of advice before committing to this type of arrangement.

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With Profits Annuities

With profits annuities are unlike standard annuities where the pension fund is invested in gilts and income level is guaranteed. They are available where the future level of annuity income is linked to the performance of a with profits investment fund.

This could mean that although your income has the potential to rise, it has also the potential to go down in years with poor fund performance. Therefore with profit annuities are riskier than guaranteed annuities.

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Variable Annuities / 3rd Way Annuities

Although standard annuities provide a guaranteed income, they aren't flexible as you have to lock into current interest rates. Variable annuities offer income mixed with capital growth benefits.

You'll receive some income guarantees, but these will provide less protection than the guarantees of conventional standard annuities.

Variable annuities can also provide you with potential for investment growth. If you choose a conventional annuity you lock into the current gilt yields which underpins your guaranteed income, but with a variable annuity it is possible to participate in any possible future growth that may occur.

Third way variable annuities aim to supply a level of secured income from an annuity whilst combining some of the flexibility of unsecured pensions.

As these types of annuity product vary widely, it's very important that you ask a qualified annuity adviser for further information.

It's also important that you ask the provider how strong the guarantee is if the company runs into any financial trouble.

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Why We Don't Show Annuity Rates: The Argument Against Annuity Rate Tables and Calculators

You may have already visited other annuity websites and used an annuity rates calculator or consulted an annuity table.

• Were you sure that the rates were up to date?

• Did you know that independent annuity brokers may have access to a broader range of retirement income possibilities?

• Did the calculator or table take into account all the annuity products on the market or was it just a selection?

• Did the site promote particular annuity providers over others as they were paid higher commissions by certain companies?

• Are annuity companies able to pay to list their particular products higher in the tables, or even have their products shown in a different, perhaps more prominent way?

• Was it an individual quotation or just an illustration?

• Were you aware that the annuity rates may change before your application goes through or, if you received a quote, was it guaranteed?

Updated By Machines Or Humans?

Did those sites use 'screen-scraping' technology that retrieves and transfers information from other programmes to collect the rates?

According to Wikipedia, "Screen scraping is generally considered an ad-hoc, inelegant technique, often used only as a "last resort" when no other mechanism is available. Aside from the higher programming and processing overhead, output displays intended for human consumption often change structure frequently. Humans can cope with this easily, but computer programs will often crash or produce incorrect results."

But What If The Site Tells You That Its Rates Are Up To Date?

Even if the annuity tables or rates calculators were 100% up to date and correct, were you aware that the resultant figures may have no resemblance to the income that you will actually achieve? This is because your annuity may increase due to circumstances as yet unknown to the website, for instance your state of health, medication you may be taking and whether you smoke or not. Some annuity providers even base your future income on your previous occupation, especially in the case of manual workers, or where you live.

So, let's say that you do eventually find a website where everything is up to date and works correctly; do you know at this stage whether you want a level, fixed-rate escalating or an rpi-linked escalating annuity? Also, have you considered your spouse, partner or dependant's percentage on your demise? Or have you thought about an unsecured pension? There are a baffling array of retirement income choices.

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What does the FSA say about comparison websites?

Comparison websites have been heavily criticised both in the media and by the Financial Services Authority (FSA) for their lack of independence and sometimes incomplete information. Consumers often don't realise that they're not getting the complete picture.

The FSA states "Some may only include products that the website can make money from in some way, for example if you click through to the provider." They also say that you should never buy a product just on the basis of what you see on their tables. They recommend getting advice first.

(Please note that the information on this site does not represent financial advice. You must consult a qualified annuity broker for complete information. "The Argument Against Annuity Rate Tables and Calculators" is opinion only and you should not rely on this information to make (or refrain from making) any decisions.)

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Why Use An Annuity Broker?

1. A broker may be able to secure better annuity deals than you may be able to.

2. They're more likely to have access to a wider range of annuity and alternatives to annuities than you are.

3. Due to their ongoing relationships with annuity providers, they may be in a better position than you to surmount any problems that may arise with your application.

4. You will have a qualified, expert point of contact should anything go wrong or need attention.

5. They work to a set of guidelines laid down by the Financial Service Authority (FSA). The FSA are the UK's financial regulator.

6. Annuity brokers have got an interest in recommending the right product for your circumstances as they will not wish to fall foul of strict FSA regulations.

7. If you choose not to get FSA registered broker advice, you may not be able to get compensation through the Financial Services Compensation Scheme if, at a later date, you have a complaint about the product that has been recommended.

UK Annuities: FSA REGULATED SITES • QUALIFIED, TRUSTWORTHY ANNUITY ADVICE

Annuities Comparison

Just tap in a few details to get an annuities comparison or simply ask a question. You details will be passed on to the Annuity Clearing House, who will contact you to deal with your enquiry and may be able to find you a much better annuity deal...
Visit Annuities Comparison FSA Number 503004

Open Annuities

You could increase your annuity by thousands. Make sure you recognise the best annuity advice when you get it. The more information about annuities you have, the more able you will be to recognise the best annuity advice when you receive it.
Visit Open Annuities FSA Number 501272

Annuity Base

Free UK Annuity Database Enquiries. Using specialist annuity industry search software, an FSA registered independent financial adviser will query top annuity and annuity alternative providers' databases to help you compare and choose which one is the best for you.
Visit Annuity Base FSA Number 501272

Annuity Key

Annuity Key is an initiative of The PRG Partnership (London), part of one of the UK's largest financial advice groups. The PRG Partnership group operate nationwide, providing expert advice to 1000s of individuals and businesses every year.
Visit Annuity Key FSA Number 512494

Simple Annuities

Finding an annuity doesn't have to be difficult. Pension annuity retirement finance experts with vast experience of annuities are waiting to help you. Compare pension annuities and annuity alternatives now.
Visit Simple Annuities FSA Number 483817

Pension Annuities Plus

Your annuity income may increase if you have had certain health problems such as high blood pressure, high cholesterol or asthma? This is also true for smokers and for those who have worked in certain occupations. Get pension annuity comparisons now.
Visit Pension Annuities Plus FSA Number 483817

The Enhanced Annuity

Specialists in enhanced annuities. It is estimated that up to 40% of the UK population could boost their pension annuity income with an "enhanced annuity".
Visit The Enhanced Annuity FSA Number 483817

Smokers Annuities

Your lifespan as a smoker and your annuity options. We're sorry to be blunt, but you most likely already know that smokers, in general, have shorter lifespans than non-smokers. Of course annuity providers are well aware of this unfortunate fact of life. Increase your annuity now.
Visit Smokers Annuities FSA Number 483817

Annuity Answers

Why should the pension annuity buyer beware and why do so many retirees ignore a much bigger annuity income? Compare annuities now.
Visit Annuity Answers FSA Number 483817

Annuity Link

As the website name suggests, Annuity Link links you to a huge amount of information about annuities and annuity rates. It's all contained within this one website.
Visit Annuity Link FSA Number 137914

Annuity Pathway

Your simple pension annuity journey. How you might take the wrong annuity route and loose the annuity income that's rightfully yours.
Visit Annuity Pathway FSA Number 460094

Just One Bite Annuities

How a pension annuity will affect your life. You'll only get one bite of the annuity apple. Once you buy an annuity, there's no going back.
Visit Just One Bite Annuities FSA Number 460094

Pension Annuity Plan

Compare pension annuities and their alternatives. Get thorough advice in choosing the right annuity plan.
Visit Pension Annuity Plan FSA Number 460094

Pension Annuity Planner

We'll increase your standard pension annuity through enhanced annuities.
Visit Pension Annuity Planner FSA Number 460094

The Female Annuity

A one-to-one annuity comparison website aimed at women. Compare annuities for women and their alternatives.
Visit The Female Annuity FSA Number 460094

Annuities Extra

Pension annuities for those of us who are not in the best of health. If you've a health problem, no matter how small or insignificant you think it is, you'll stand an increased chance of a higher annuity income.
Visit Annuities Extra FSA Number 150427