What Are Your Pension Options?
|
If you are thinking about retirement, or are already retired, then it is important to look at all the options. When you retire, you do not want a drop in your standard of living, and will need to look at ways to help out your basic income. There are various pension options available to you if you want to improve on your basic income.
One of the best ways to improve your retirement options is to consider an annuity. There are various types of annuity available, and you can also mix and match to suit your own particular circumstances. The basic state pension, provided you have the full amount of qualifying contributions, is £102.15 per week, but this will not be payable until you reach the relevant age. A work pension can supplement this but many people are obviously looking at ways to augment their pensions.
For example, like many of us, you may be concerned at the rise in the cost of living, especially in fuel and food. Basic items are becoming more and more expensive and taking up more of the household budget. If your income remains the same while these items are going up in price, you will find that your standard of living will fall. There is an annuity available which is linked to the retail price index, so as basic prices go up, so does your annuity. This would mean that your annuity income would rise with inflation, thus offsetting the expense of rising food and fuel prices.
Some people may not be so concerned about day to day living costs, but are looking for the occasional lump sum to buy those special items such as a holiday. When you are on a fixed income like a pension, you may find it more difficult to save regularly for these items. One pension option which will cover this is to take out an annuity where you receive a yearly lump sum to spend as you lease on a special item. Annuities can also be paid out monthly or every three months. You could also receive your payment twice a year instead of once a year.
You must also consider whether you are looking at a single or joint income. You may be concerned about your partner’s income if you should die, and want to make sure that they will be provided for. A joint annuity is the answer to this as the income can still continue after your death or the death of your partner or spouse. This can give peace of mind at a distressing and uncertain time. There are even special annuities available if you are in poor health, or in a higher risk category such as smokers.
Everyone is different, with different needs and resources. Where your pension options are concerned, there are so many choices that it is important to get an annuity tailored to what you need and want. Once you have decided what your own particular needs are, you can’t beat personal advice to help you choose among the multitude of options available. Whether you are trying to protect your income for the ravages of inflation, or just wanting some extra money every month, you need to look at your pension options. |
|
Author Resource:-
If you are confused about your pension choices and retirement options then speak to an advisor at rightannuity.co.uk for independent advice and help.
|
By :
Gareth Hoyle
Submitted
2011-11-10 08:27:30 |
Article From Article Mayhem
 Ezine ready view |
|
|
|
Related Articles
|
|
|
![[Valid RSS feed]](http://www.articlemayhem.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed![[Valid RSS feed]](http://www.articlemayhem.com/images/rss.jpg "XML Feed For RSS")