Article Abstract:
Annuities may offer poor value to buyers with major problems. Many companies do not offer better rates than for people with perfect health. Two companies do offer better rates, however, and they are the Pension Annuity Friendly Society, and Sun Life. Older people obtain better annuity rates. Impaired life annuities can provide a 20% increase in annuity income. These improved rates are only available for single-life annuities. There is some improvement for rates for joint-life annuities if the buyer has health problems, but the increase is not significant.
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Article Abstract:
Investors who are planning to retire can purchase conventional annuities from a lump sum or unitised annuities where income varies in line with investment performance. Scottish Widows offers a unitised annuity which can be taken as a with-profits version. This type of annuity involves risk but does not trap investors into low annuities due to low levels of interest rates when they retire. Investors could use a unitised annuity for an ancillary pension fund.
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Article Abstract:
Annuities are purchased with pension funds to provide an income after retirement. They do not have to be purchased from the pension provider. Women tend to receive lower annuity rates due to their greater average longevity, but smokers and people in poor health can obtain better rates. Joint annuities provide for a partner, and annuities can also be inflation-proofed. A financial adviser can help in choosing the best type of annuity.
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