Secure a Stable Income in Retirement
An annuity is a financial product designed to provide you with a regular, guaranteed income during retirement. While pension freedoms have given retirees more flexibility in accessing their funds, annuities remain a popular choice for those seeking certainty and peace of mind.
What is an Annuity?
An annuity converts your pension savings into a regular income, which you’ll receive for a set period—typically for life. This guaranteed income can be a reliable way to cover your essential living expenses in retirement, regardless of how long you live.
Types of Annuities
At P J McIlroy & Son, we can help you explore different types of annuities, including:
- Lifetime Annuities: Provide a guaranteed income for the rest of your life.
- Fixed Term Annuities: Offer a guaranteed income for a set period, with the remaining balance returned at the end of the term.
- Enhanced Annuities: Offer higher income rates for individuals with specific health conditions or lifestyle factors (e.g., smoking).
- Inflation-Linked Annuities: Ensure that your income rises in line with inflation, protecting your purchasing power over time.
Each type of annuity has its own benefits and considerations. Our advisers will guide you through the options, ensuring you select the annuity that best suits your needs.
Why Consider an Annuity?
While pension freedoms allow more flexibility, there are still key reasons why an annuity might be the right choice for you:
- Guaranteed Income: Provides financial security, knowing your essential expenses are covered.
- No Investment Risk: Your income is unaffected by market volatility, making it a low-risk solution.
- Tailored to Your Needs: Annuities can be personalised to include inflation protection or survivor benefits for your spouse.
Should You Choose an Annuity?
An annuity is a great choice for those who value certainty and want to remove the stress of managing investments in retirement. However, whether an annuity is right for you depends on your financial situation, lifestyle, and retirement goals.
At P J McIlroy & Son, we will:
1. Assess Your Financial Situation: We’ll evaluate whether an annuity aligns with your long-term retirement plan.
2. Provide Comprehensive Market Research: As independent financial advisers, we search the entire market to find the best annuity rates available.
3. Help Maximise Your Income: We ensure you get the most from your pension pot by considering enhanced annuities if health or lifestyle factors qualify you for higher income.
Things to Consider
- Inflation Protection: Fixed income annuities may lose value over time due to inflation. Inflation-linked options can mitigate this.
- Flexibility: Once you purchase an annuity, it’s typically irreversible, so careful consideration is essential.
- Health and Lifestyle: Your personal health can influence the income rates offered. Enhanced annuities provide higher payouts based on qualifying health conditions.
Talk to Us
Deciding whether to buy an annuity is a significant decision, and we’re here to help you navigate it. For tailored advice on whether an annuity is the best option for you, contact us at 02820762353 or email ifa@pjmcilroy.co.uk.
