Are you looking to buy an annuity and intend to use an annuity rates calculator to find the best annuity rates?


Many people mistakenly trawl through websites on the Internet looking for the best annuity rates calculator; thinking that by using it they will find the best annuity rates for their personal set of circumstances.  Unfortunately, by doing so, many of them can easily end up being misled.

Why is this so?

Well, finding the best annuity rates is not as simple as some would have you believe.

Many annuity rates calculators will usually only show the best standard annuity rate deals currently available.

A typical annuity rates calculator will produce a table as follows:


EXAMPLE STANDARD ANNUITY RATES COMPARISON
ANNUITY PROVIDER ANNUAL ANNUITY INCOME
Just Retirement
£5,376.00
Hodge Lifetime
£5,088.00
Legal & General
£5,016.00
SAGA
£4,992.00
Canada Life
£4,920.00
Retirement Advantage
£4,752.00
Aviva
£4,320.00

The above figures are for illustrative purposes only. They are based on standard annuity rates for a person aged 65 with a pension pot of £100,000 buying a single life, conventional Lifetime Annuity with level income, no guaranteed period and the income paid in arrears without proportion. A Wokingham RG40 postcode was used for quotation purposes. The income figures shown are gross. Annuity rates checked: 14/01/2017. Source: Money Advice Service Annuity Comparison Tables


 

 

The trouble with standard annuity rates are that they are ‘one size fits all’ kinds of rates and they do not take account of factors that could lead to you receiving a higher annuity income.

Factors such as whether you smoke cigarettes, drink excessively or suffer from (or have suffered from) certain medical conditions can all play a part in getting you an enhanced income that is up to 40% higher than the standard annuity rates shown by the best annuity rates calculator.

Don’t go thinking that you have to be ‘knocking on Heaven’s door’ either because you don’t. Even if you only suffer from a number of minor health impairments or certain lifestyle issues the cumulative effect that they are having on your health could still qualify you for a higher annuity quote.

It’s not just your health and lifestyle that can qualify you for a higher annuity income because even something as daft as your postcode could too!

The table below gives an example of how annuity rates can differ depending on where you live.


POSTCODE ANNUITY RATES EXAMPLE
POSTCODE AREA ANNUAL ANNUITY INCOME BASED ON POSTCODE AREA
Wokingham RG40
£5,376.00
Glasgow G5
£5,388.00
Rhyl LL18
£5,484.00
Blackburn BB1
£5,376.00
Salford M27
£5,376.00
Motherwell ML1
£5,376.00
Swansea SA1
£5,376.00
Dorchester DT1
£5,412.00
Kensington W8
£5,304.00

The above figures are for illustrative purposes only. They are based on standard annuity rates for a person aged 65 with a pension pot of £100,000 buying a single life, conventional Lifetime Annuity with level income, no guaranteed period and the income paid in arrears without proportion. The income figures shown are gross. Annuity rates checked: 14/01/2017. Source: Money Advice Service Annuity Comparison Tables


 

 

To find the best annuity rates, you have to supply a lot more information about yourself than any annuity rates calculator will probably ever ask.


Even if they do show some enhanced annuity income examples, they will only be ‘ball park’ figures and are in no way a definitive measure of how much annuity income could be available to you.

If you mistakenly choose to accept them as being the best annuity quotes for you, it could potentially end up costing you thousands of pounds in lost pension annuity income over your retirement years.

To be certain of finding the best annuity rates for your personal set of circumstances you need to act more cannily. You need to widen your search and look beyond the obvious. It will involve you putting in more effort but the potential reward of a higher lifelong annuity income can be well worth it.

The only true way to find out which annuity provider is the best in your own particular case is to literally apply to each and every one of them for a quote which, let’s be honest, is more than likely going to put you off the idea.
 
Fortunately, you don’t have to go through the process of making any repeated applications on your own.

All that you need to do is to contact a qualified annuity expert and ask them to do the job for you.

Aided by modern technology, something called The Common Quotation Request form, plus all of their in-depth knowledge of the annuity buying process they can quickly search the whole of the annuity market for you.

After they have received back all of the requested annuity quotes they can present you with a summary of their findings.

As part of the process they can also explain all of the annuity alternatives to you so that you can make a more informed choice over your retirement income provision.

Finally, they can help you choose the correct annuity options and also help with the completion of the associated paperwork.

So, will you choose to miss out on the highest amount of pension annuity income that you are genuinely entitled to?

Will you mistakenly trust an annuity rates calculator to find you the best annuity rates?


Place your trust in an annuity adviser to find you the highest annuity income that your pension funds can buy!