Annuity Calculator UK

Get a bigger retirement income using the pension annuities calculator

Up to 40% of people qualify for enhanced rates

Annuity Calculator UK will help you find the best annuity rates from the open market.

Annuity Calculator UK

Many people automatically assume when they retire that their pension will start paying out, this is not the case you have to exchange your pension fund for an annuity. At this point you can use an annuity calculator to work out how much pension you will get.

Picking a good-value pension annuity rate could give your pension a significant lift.

Many people assume that they have to buy an annuity from the company that has held their pension. This is not the case, as you have the right to shop around for the best pension annuity rates when you retire – it’s called the Open Market Option (OMO). Pension annuities calculator. Worryingly, figures from the Association of British Insurers (ABI) show that 61 per cent of people who bought an annuity in 2007 did not shop around in this way. Using our annuity calculator you could see for yourself if you can get a better annuity rate than your existing provider is giving.

There are significant differences in the performance of the best and worst pension annuities rates and the advice of an independent financial adviser should be sought to ensure you get the best annuity rate.

Use the annuity calculator to see if you can get a better annuity rate than your existing pension provider. It will allow you to calculate annuity rates and also pension annuities calculator

Annuities Explained

You convert your pension fund into a regular income that will last as long as you live. The income is taxable and the amount that you get each year will depend on the size of your fund, the pension annuity rates the annuity company offers, your gender, age and health, and the type of annuity that you opt for. You are allowed to take up to a quarter of your pension fund as a tax-free lump sum and most convert all of your remaining pension fund into an annuity before the age of 75.

Which Annuity?
Most people opt for a conventional lifetime annuity, but there are several options to pick from.

• Level - Your income will stay the same each year irrespective of inflation.
• Increasing - This can either match inflation for the rest of your life or rise by a specific percentage each year.
• Guaranteed - This will continue to pay out for a time to a nominated individual if you die soon after retiring.
• Joint-life - A joint life annuity gives your partner some or all of your continuing income if they outlive you.
• Investment-linked - If you have a larger pension fund, you may prefer to invest it in the stock market. This means that your annual income could go down as well as up.

Checklist
Follow these tips to get the most from your annuity

1. Choose the best option. Shop around using the open market option and don’t just accept what your pension company offers.
2. Get good advice. It is important to talk to an independent financial adviser who specialises in annuities before you make your decision.
3. Think about inflation. You can make your annuity ‘inflation-proof’ by having it icrease in line with price rises, although you’ll start off with a lower income than if you’d chosen a level rate.