Although the government now provides the “new” (single) state pension from 6th April 2016 (which is currently a maximum of £155.65 per week) most people will receive a lower amount and some people will receive nothing at all. Given this is only a very basic level of income, which will become payable at increasing ages, it is advisable to make your own arrangements.One of the most common forms of saving for retirement is a pension, whether that is a workplace pension or a personal pension.
Another way to secure a good source of income in your retirement years is with an annuity. While recent changes to the rules of annuities and drawdown made them less attractive to some people, many people still prefer having the security of a guaranteed income for life.
Before purchasing an annuity, it is a good idea to seek advice from an independent financial adviser as investing in the wrong or uncompetitive annuity could result in a lower annual income. At Castlegate, our financial advisers in Stamford and across the East Midlands will work with you to ensure that you choose the best financial products for your retirement planning. It is also worth mentioning that the government has confirmed that as of April 2017 pensioners will have the option to sell their annuities for a lump sum.
Annuities still remain popular as they guarantee a fixed income for the remainder of your years. An annuity is an insurance product that allows you to swap your pension savings for a guaranteed regular income for the rest of your life. The amount you will receive will depend on the rate offered by the annuity provider.
Typically, those with serious health problems are offered a higher rate than those who are likely to live longer. Other factors that can determine the amount you receive include your age, postcode, prevailing annuity rates, the type of annuity you buy and the size of your pension fund.
If you are unsure if an annuity is the best financial product for your retirement, it is worth considering the following points and seeking advice from a financial adviser.An annuity may be suitable for you if:
Castlegate Financial Management is one of the leading independent financial advisers in Stamford.
Operating from its head office in Grantham it serves clients across the region, meeting with clients at their homes, business premises or at its sister business unit sites across the East Midlands.
Our capabilities and passion for the highest quality service mean you can enjoy the best of both worlds – dedicated personal service and tailored wealth solutions. Our services are available from 11 offices covering Lincolnshire, Leicestershire and Nottinghamshire to provide help and guidance to clients, irrespective of circumstances.
Whatever your financial requirements, be they corporate or personal affairs, Castlegate Financial Management offer fully independent advice from our team of experienced advisers.