If you’re considering buying an annuity, you’ll likely be searching for the best annuity rates.
With so many online annuity calculators, it can be difficult to know which one to use and whether or not the annuity quotes they provide are accurate.
In this guide, we’ll be proving helpful tips and advice about how to get a quote for a retirement annuity in the UK and what you can expect after.
What to do before you get a quote for an annuity
Buying annuities is a huge financial decision that could have a lasting effect on the income you receive and live off during your retirement.
It’s important that you make an informed decision based on what feels right for you and your circumstances.
Here’s a list of steps to take before requesting a life annuity quote…
Speak to a pensions advisor
Researching multiple annuity providers is time-consuming, to say the least.
Some may not be able to offer you the rate you need whilst others may have restrictive terms that limit how often you can access your money.
A pensions advisor will have access to the annuity quotation providers in the UK and can do this for you.
They will take your preferences and financial situation into consideration and can filter out any companies that don’t fit the criteria.
There is a lot of jargon to wade through but for your own financial benefit, know the difference between the products and which one might be more suitable for you.
Read the fine print
Each provider will have varying terms and conditions which could affect how much money you make.
An initial online annuity quote may sound appealing but always check for hidden fees or charges that you might be expected to pay.
Each provider should have a terms and conditions page on their website (although this can become tedious!) so ask a pensions provider to source this information for you.
Consider all of your options
Once you buy an annuity, you cannot change your mind, so carefully consider whether other retirement products could be better for you.
Consult our pensions section for information about alternative products.
How to get the best annuities rates and quotes
There are three possible routes to consider when searching for a favourable retirement annuity quote:
Use an online annuity quotes calculator
Online calculators can be helpful for quick snapshot comparisons between product providers. You can find one on the government’s PensionWise website here.
A problem that many people experience when using these tools is that in order to present a quick quote, some calculators make assumptions regarding:
- The proportion of your income you would you like your partner when you die
- The minimum payout period
- Whether or not you want your income to increase over time
This can lead to misinformation and confusion about where you can get the best annuity rates.
Ask each of the annuity providers to give a personalised quote
Online pension annuity providers can send quotes directly to you either via post or email (if encrypted).
Each website will ask you for detailed information about your circumstances in order to give you a quote and therefore, filling out each application can take some time. With this in mind, seeking professional advice is a better option…
Ask a pensions advisor to source a life annuity quote for you
It doesn’t hurt to use an online calculator tool or carry out market research yourself to get a rough idea of the deals on offer, but the best way to get a favourable annuity quote is to consult with an independent pensions advisor, like the ones we work with.
To make an informed decision without the hassle of comparing numerous quotes, speak to a pensions professional.
They will have access to hundreds of annuity product rates and can do an in-depth search for the best life annuity quotes for you.
Not only does this save you time but it can also save you money. With a full picture of each of the rates, you can quickly identify which ones are the most competitive based on your circumstances.
Can a pensions advisor calculate and compare fees too?
Yes. As well as retirement annuity quotes, a pensions advisor can compare penalty charges and exit fees of each of the annuities companies and calculate any potential costs you may incur.
This can be really helpful as these costs can significantly affect how often you can withdraw your annuities.
A lot of people feel that because of their current financial situation, they won’t need to withdraw funds in the future and so don’t need a quote that includes the cost of fees.
However, circumstances can change so it can be useful to know how any hypothetical situation, including an early withdrawal, could affect your income.
What information do I need to provide to get an annuities quote?
- The type of pension(s) you have (see your pension benefit statement)
- The value of the pension savings you’d like to use for the quote.
- Your height, weight and waist measurement
- Full details of any medical conditions you have
- Number of hospital admissions (if any)
- The names of any medication you’re taking, including information about the start date, dosage and frequency
- Information about your spouse/registered civil partner or financially dependent partner (If you wish to name a beneficiary.) This can include questions about their health, height, weight, waist measurement and details of smoking habits and alcohol consumption
- You also need full details of any medical conditions they have
What happens after I request an online annuity quote?
After you have submitted your request for an annuities quote online, you should receive your quote documents via email. Some annuity providers may send you a personal link so you can access any updates regarding your quote on their website.
If you would prefer to receive your quote on paper then inform the annuities provider ahead of applying for your quote and they should be happy to send any information in the post.
Once you have your quote, carefully consider your other options and seek advice from an independent financial advisor.
Once you are absolutely certain that you are happy with the terms and conditions of the contract and that you understand the structure of the annuity, you are ready to apply.
What is the calculation used to get an annuity quote?
A lot of people wonder how an annuities provider calculates how much income it pays out.
Of course, there are many variables that can affect the amount you receive as income:
These can include:
- The amount you deposit into the annuities account
- Whether or not your rate is fixed or variable
- Whether or not you want the annuity to pay out to someone after you die
- The interest rate that your provider agrees to pay you
- Your annuity rate
Speak to a pension expert about annuity quotes today
For clarity and for confidence in your annuities for retirement purchasing decision, speak to a professional who has experience with the full range of annuities products.
The advisors we work with will be happy to provide you with a quote for any of the annuity products you are interested in and can also make you aware of any other retirement products that could be more financially beneficial for you.
For free and confidential advice about the best annuity quotes, call on 0808 189 0463.
Alternatively, make an enquiry here and a member of the team will be in touch shortly.