There are some 450,000 annuities sold every year in the UK. Everybody that reaches retirement and has 
saved in a pension scheme has the right to the open market option. You do not have to purchase an annuity from your current pension provider you can shop on the open market to find the best annuity rates. A specialist annuities intermediary could help you increase your annuity income considerably.
Enhanced Annuities
Many retirees do not consider whether they could be eligible for enhanced annuities. If you smoke cigarettes or tobacco products and have done for many years then you could be entitled to enhanced annuity rates. If you have mild or severe health problems or have ever been hospitalised for a medical condition then you may also qualify for enhanced annuities. It does make sense to contact an independent financial adviser and annuity specialist.
With Profits Annuities
The problem with guaranteed annuities is once you have bought one it cannot be changed. There are many retirees that are prepared to take an investment risk and purchase a with profit annuity. These with profit annuities are invested in the life insurance company with profit funds and your annuity income could rise each year with the addition of bonuses gained from the investment returns of the fund. The down side is that the income could fall if the investment returns are negative.
Annuity Calculator and Annuity Tables
When conducting research for your annuity you will come across many annuity tables, these tables show for a given criteria the amount of income each provider listed in the annuity table will give. You may also come across annuity calculators which allow you to enter personal criteria and produce a list of providers that match your criteria. The annuity calculator can be a useful guideline but you should contact the providers or an intermediary to get an accurate illustration.
Best Annuity Rates
The best annuity rates from the providers differ considerably and it is very important to use the open market option to get the best annuity rates possible. Your age, your lifestyle and even postcode have a factor in which annuity rates providers are going to give you. Annuity purchase is a one off opportunity and it is therefore very important to get it right.
Income Drawdown
Many people do not want to purchase an annuity immediately, this could be because they do not feel that annuity rates are good value at that time or because they want a more flexible way of taking retirement income. Income Drawdown allows you to take an income between zero and 120% of the Government Actuaries Department rate for your age. Income Drawdown is for the more sophisticated person and there are risks. Seek independent financial advice to find the best income drawdown.
