Finding the best annuity seems to be an impossible task these days. At one time, annuities were considered to be the greatest thing since sliced bread. About 20 years ago, annuity rates were about double what they are today. This meant that a fixed rate guaranteed annuity was an almost foolproof method of investing pension money. The dismally low rates offered by insurers nowadays has caused investors to look in other directions.
Are Annuities Worth It?
Some say the best annuity is investment based. Certainly, they offer the potential of much higher rates than their fixed counterpart. However, as they are market-based, there is the chance they will plummet in value. Certainly, the majority of investment based annuities have performed poorly over the last few years.
Thousands of eyes have also glanced at income drawdown. The new legislation has ensured that income drawdown can still be utilized after the age of 75. Again, this investment is market-based and there is the danger that withdrawing too much money could leave the account depleted. Some still see the best annuity to be fixed rate guaranteed though there is little indication that the rates will increase in the near future. It may be that you are probably best served shopping around and looking for the best rate now, rather than wait and risk the market falling or the loss of your existing pension fund.
As there are dozens of options to choose from, it is important to discuss matters with an independent financial advisor who can help you sift through the companies on offer and find the annuity for you. A financial advisor can find the best annuity in the current market, based on your circumstances, rather then just rates. Fill in our form to sort out your financial future as soon as possible.