Annuities in the UK and annuity rates 2011 have been rising and falling month on month, one minute they are up, the next they are down. To get the best annuity rates you need to shop around and use your right to the ‘open market option’.

 

Annuities in the UK and annuity rates 2011 have been rising and falling month on month, one minute they are up, the next they are down. To get the best annuity rates you need to shop around and use your right to the ‘open market option’.

 

The Open Market Option (or OMO) was launched in 1975 under the United Kingdom Finance Act. The purpose of the option is to allow those about to retire to take their accumulated pension pot and shop around all the annuity providers to see if they can find a higher retirement income. You do not get the same annuity rates 2011 from each provider, and are significant differences between the highest and lowest.

 

Another reason you might want to shop around to find the best annuity rates 2011 is that you might find you qualify for enhanced annuity rates. These rates are available to anyone that qualifies on the basis of reduced life expectancy by lifestyle habits, such as smoking, or qualifying medical conditions.

 

Independent Financial Advisor, Jennie Gray, comments that;

 

“The Open Market Option is available for all retirees to take advantage of. Anybody that does not take advantage could be losing out on what might be thousands of pounds for some people. You do not have to accept the rates offered to you by your pension provider. They might not be the best and they certainly unlikely to include enhanced annuity rates. “

 

Jennie even goes as far as to say that “The Open Market Option should be made compulsory”

 

The idea of a retirement annuity is not something new.  In fact, it has existed for the last two centuries.  According to how annuities used to be, they were products meant for the security of people like clergy and widows.

 

Basically, an annuity is a product you purchase to protect yourself and your assets.   What you need to be protected against are the risks you face prior to retirement.    Specifically, it erases your apprehensions about outliving your assets.

 

As can only be expected, everyone can and will draw near to retirement.  As you age, you will be just as concerned about how to maintain your lifestyle and provide for your heirs.  Definitely, you would like to make the most of the assets you’ve earned and worked hard for.

 

Thus, an annuity would be instrumental in solving these concerns about your life’s assets.  In answer to these problems, here’s what this product can do for you:

 

  1. It will generate income for you while you pay and contribute.  In return for the payments and contributions you make, you will have a retirement fund to last the rest of your lifetime.
  2. In the meantime, the extra income you generate will be considered temporarily tax-free with good basis.  The good news about this all is that any income which is tax-deferred can and will have a greater opportunity to earn.  This translates to more stability and growth in your investment.
  3. It will protect your heirs when the time comes that you are gone.  You only have to state them as your beneficiaries, after which they would be entitled to a death benefit.
  4. If you are someone who is keen on investing and expanding your resources, then an annuity would be just the right thing for you.  It is one way of diversifying your investments into products which are sound and reasonable.  There are more gains to be had than losses, and it will generate many returns.
  5. Lastly, it will help you avoid one of the most common predicaments which is outliving all your assets.  While you are alive, you are secure in the knowledge that all you loved ones are well provided for.  Both you and they will ultimately benefit from the singular product you availed of.

Most people see an annuity as an important supplement to their retirement plan.  Think of it as a safe and simple way to create added wealth minus the risks.  You, too, could discover that it will be a valuable addition to your income as you grow old and work less.  Knowing now how advantageous it can be for you, perhaps you should start investing in your own protection!

For help or advice on finding the best annuity rates 2011 for you, visit annuitysupermarket.com or call 0800 644 6021.

Annuity Supermarket Limited

Aldermaston

Reading

Berkshire

RG7 8NN

Contact: Kevin Stelfox

Telephone: 0800 644 6021

Email: kevin@retirementsolutions.co.uk

http://www.annuitysupermarket.com/