Buying annuity: making the right decision

Buying annuity is an irreversible decision thus, it’s crucial that you choose the right type of annuity.

08:59 18 July 2013

Most retirees with a defined-contribution pension opt to buy an annuity that will provide them with fixed monthly income for the rest of their lives. Buying an annuity is typically a one-off and irreversible decision. Thus, making sure that you get the right annuity that offers the best deal is extremely important.

 

First step is to determine if you’re eligible for an enhance annuity which typically pay higher rates when compared to a standard annuity as it takes into account your medical history, medical conditions, and lifestyle. 

 

Next step is to shop around instead of automatically signing up with your pension provider. This simple step could be the key to increase your retirement income by for example, up to 20per cent each for the rest of your life.

 

Shopping around doesn’t only allow you to get better rates but it will also means getting more options, making it easier for you to find the right type that suits you best.