The amount of income a provider will pay you is dependent on the size of the purchase fund (your pension savings) and the annuity rate they are offering.
The provider will calculate your annuity rate based on several factors, including:
- Your Age
- Health & Lifestyle
- Where You Live
- Your chosen options, such as taking out a joint-life policy or the inclusion of death benefits.
Health & Lifestyle Rate Enhancements
Your health and lifestyle can significantly affect the annuity rate offered to you by providers. If you smoke, drink, are overweight, or have medical conditions such as high blood pressure or diabetes, then the rate offered could increase by up to 40% .
Throughout our lives, we see the negative impact that our health and lifestyle can have on financial products such as life insurance. At retirement, it is quite the opposite and vital that you share as much information as possible when comparing annuity quotes to ensure you receive the highest potential income.
How can I compare annuity rates?
At My Pension Expert, we search the whole of the market to compare and secure the best possible annuity rates for our clients. You can find out your potential annuity income and compare other retirement options by speaking to one of our retirement specialists today.