446735002-Pension-Fix-by-Martin-Lewis

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Fixed-term annuitiesA similar product is a fixed-term annuity. Here, you invest in a plan whichprovides guaranteed income payments for a set number of years or until youreach 75. At the end of the period you get a guaranteed maturity sum and arefree to go back into the market to buy another type of annuity.They are a useful way to postpone your final annuity purchase if you think yourcircumstances will change. So you have the flexibility to change your income,but you have no guarantee that your maturity amount will buy a replacementannuity at the same level.They allow you to choose from a range of income and death benefit optionsnow, as well as deciding what maturity amount you wish to have returned at theend of the term.✓✗PROSFlexibility. Potentially, a higher income in the future if your health deteriorates.CONSYou risk annuity rates falling by the time you buy one. No certainty of a fixedincome for the rest of your life.In all the above plans it is important to carefully consider thetax implications.22
3How to ensure you getthe best rateOK, so you’ve got an idea of the type of annuities that are available, yet at thispoint, you may still be unable to decide which one is right for you. It’s also crucialto remember annuity rates change daily, there is no standard pricing, and if you’regoing to compare you need to ensure that it’s a fair comparison and things haven’tchanged.Yet before going onto exactly how to pick, it’s worth considering some basicfacts to enable you to benchmark the rate you’re getting.1. Find out what your pension provider paysSee what rate it’ll give you. If nothing else, you should end up with asatisfactory glow later when you realise how much more you have earned bynot going with it.2. Check out the standard MAS ratesThere are comparison tables on the Money Advice Service’s website (http://pluto.moneyadviceservice.org.uk/annuities) where you can input your detailsand see what rates are available. In addition, there are many other comparisonsites like www.annuitydirect.co.uk or www.h-l.co.uk/pensions/annuities.23
Page 1 and 2: Martin Lewis’GUIDE TOANNUITIESSPO
Page 3 and 4: Independence and integrityThis guid
Page 5 and 6: Martin’s IntroTHE BIGMESSAGEYou d
Page 7 and 8: Turning your pension pot into an in
Page 9 and 10: Never simply accept your pension pr
Page 11 and 12: For every month you delay buying yo
Page 13 and 14: What if I can’t remember what pen
Page 15 and 16: Tax mattersAnnuity income is taxed
Page 17 and 18: Annuity Angst: Martin’s TipsChoos
Page 19 and 20: Escalating annuitiesIncome grows wi
Page 21 and 22: Stats show how much annual income a
Page 23 and 24: The third way - variable annuitiesA
Page 25: Capped drawdownIf you have less tha
Page 29 and 30: Pensions companies will have their
Page 31 and 32: Annuity Angst: Martin’s TipsA not
Page 33 and 34: Other benefits to take advantage of
Page 35 and 36: 31Your Notes

446735002-Pension-Fix-by-Martin-Lewis

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