With large sums of money at stake we would strongly urge people who are considering their retirement options to take advice and cut out the potential pit falls
(PRWEB UK) 28 September 2012
Choosing an annuity is an important decision in life and it is best to seek independent advice on the matter. A recent study by My Pension Expert shows that a consumer can get up to 40% more income from their annuity by shopping around.
The annuity’s small print is a significant part as occasionally, several older pensions have valuable guaranteed rates written in to the contract and often they cannot be beaten, even against the current market’s deals.
A clause to be aware of is pension penalty. A penalty that could be incurred if money is withdrew before a specified age. On the other hand, some old pension pay out a bonus if the funds aren’t touched until the set age.
It is essential to read the small print and fully comprehend what the annuity will offer and whether it is best.
Planning, shopping around for an annuity and seeking advice will ensure that the annuity you lock in to is the right one. Selecting the wrong annuity or not reading the small print will prove to be costly as it could result in not getting the maximum yearly income.
Scott Mullen of My Pension Expert the Independent Financial Advisors who specialise in the at retirement market said “Some companies who operate in the at retirement market do so on a non-advised basis meaning the onus for finding potential hidden benefits or potential penalties lies with the annuity buyer. On the other hand if advice is taken the responsibility lies with the advisor. With large sums of money at stake it is strongly recommended that people who are considering their retirement options to take advice and cut out the potential pit falls.”
My Pension Expert is a company of Diploma Qualified Independent Financial Advisors who specialise in the at retirement market.