by admin on July 25, 2010
The guaranteed annuity calculator works by helping you calculate how much income your pension fund will pay at retirement. The basic idea behind the annuity calculator is that you do not have to run around telephoning all the insurance companies to get a quote on the best annuity rates.
The start of retirement is stressful enough without the hassle of worrying how much income your pension will pay you. By using the annuity calculator you can find out in advance how much income you might get. You can probably start looking up to 6 months before retirement to see how much you will get. Remember though that annuity rates change all the time and therefore it will just be a guide.
Principle of the Annuities Calculator
The principle behind the annuities calculator is that given some basic information it will produce a table of results from all the annuity providers it is programmed with. So the more annuity providers that are programmed into the annuities calculator the better. As already mentioned annuity rates change all the time and so in theory you can keep going back to use the annuity calculator frequently before retirement.
One final point to remember is that the annuities calculator is not a substitute for full independent financial advice from an annuity specialist.
by admin on July 18, 2010
The new coalition government confirmed this week that it would be bringing in radical new pension rules that would see an end to retirees having to buy an annuity.
Tom McPhail who one of the most respected commentators in the UK pension industry said the new rules went further than he had anticipated. He said that…”…this is more radical than I expected. It effectively means no one has to buy an annuity, ever. Realistically, people on very small pension pots might not satisfy the minimum income requirement, so will have to buy an annuity anyway – the vast majority of annuities are purchased with relatively small pension funds of £50,000 or less”
Jennie Gray, Independent Financial Adviser from annuitycalculatoruk said “We are still waiting for full details of the proposals, but it looks like the biggest shake up of the UK Pensions system ever.”
Under the old annuity rules you had to purchase an annuity at age 75, which meant many people that did not require the income from their pension fund were forced to purchase an annuity. At the same time if that person died before age 75 and had not purchased an annuity then the whole of their pension fund without a tax charge was returned to their estate. This was a very lucrative tax advantage.
Jennie Gray, commented further: “.. these new rules will make the annuity providers look at the market in a different way and perhaps develop new products.
To find the best annuity rates use the annuity calculator
