New legislation being passed by the government will remove the compulsory age deadline of 75 for those who are looking to buy an annuity with their pension. In 2011 the government are introducing a new ruling that will completely remove the deadline so that pensioners can wait for annuity rates to rise before securing their income.
Pensioners need to receive a regular income once they have retired and it can prove difficult to manage a large sum of money for a long time. This is why annuities are used to split the pension into a fixed and regular income. The majority of people decide to stay with their current pension provider without shopping around to find the best annuity rates, however this can result in a loss of potential income as when time is taken to compare the different annuity providers, many pensioners can find a 30% increase in income is possible.
Today there are a many annuity products available. Fixed annuity is one of these popular products. There are two primary forms of fixed annuities; those that don’t payout right away and those that have an immediate payout. Immediate annuities usually payout income upon inception, and deferred annuities defer payment until a later date.