While choosing the best annuity can be an important decision, it is at least as equally important to choose to invest with the right provider. There are a number of different investment and annuity products available from nearly every provider but they are not a one size fits all. Rather, it is important that investors ensure that they are investing their money in both the right product as well as with the right provider.
To begin, it is crucial for investors to make sure that they buy annuities with FSA authorized and regulated annuity providers. The Financial Services Authority serves as a watchdog to ensure that investors are shopping around for the best annuities. In recent years, the FSA has determined that many investors are not using the open market to buy the right annuities. In fact, six out of every ten annuity investors are simply choosing the option offered by their pension provider, instead of shopping around and potentially finding a better fit for their financial needs.
Not only have some investors been failing to use the market as a means to ensure that they are buying the right annuities, some consumers are even falling victim to scams that are putting them in negative equity situations, forcing their spouse to end up actually paying off debts after death of the investor.
While choosing the best annuity can be a time consuming task, it can also be a worthwhile investment of both time and money. However, choosing to buy the best annuity is only part of the research and work associated with investing. Buying annuities also involves picking the perfect provider, one that is both FSA authorized as well as one that provides the best annuity for purchase. This means finding an annuity and provider that will cater to the individual and unique needs of the consumer. Not all annuities will work for every investor and not every provider will offer the best annuities for purchase for each consumer.
Annuities have quickly taken over the retirement market and offer a solid and reputable way to ensure financial stability during the retirement needs. However, they can only do so if the right annuity and provider are chosen. Buying annuities can take a great deal of time and research but it is worth it for the investment that can potentially be paid out to the consumer.
Coming up to the age of retirement is never an easy thing, your life is about to change in a dramatic way, but in addition to that you have to start thinking about how to get yourself from one side of retirement to the other with a minimum of financial stress and hassle. Once you begin looking into the various choices that are available to you after retirement you will come across annuities, again and again. An annuity, even the best annuity, will work in a basic way as an exchange. In exchange for your pension you will receive a regular income for the rest of your life.
There are many options that you can choose from, but an annuity will certainly be one of them, and with the wealth of annuity providers out there, the key is to find the best annuity and the best annuity provider that you can. But the question then becomes what is the best annuity, and the answer is quite simple. The best annuity is the one that will make sure that you are financially stable and looked after, from the moment you retire until you die.
This might seem like a big thing to ask an annuity provider, but really this is what they are offering, and what the best annuity should always provide. Unfortunately, there is no singular answer to what the best annuity will be. It will depend on the pension and savings that you have managed to put together. It will depend on whether you want the best annuity as a single person or as a couple. It will also depend on your current health and if you are taking any medication.
There are so many variables even before you begin to think about the annuity providers, that actually the only way to find the best annuity is to find the best one for you. Luckily this is not too difficult to find out about. There are many websites dedicated to educating you about annuities and what your options are, but it is your insurance company’s responsibility to inform you about what your options are. So to find the best annuity, this is a good place to start. However, as in all shopping, it is best to shop around before making a firm decision, especially since you cannot get your money back once you have bought an annuity.
What is the definition of procurement? To procure something is to plan and research its purchase, examine the product in all its aspects and to find the appropriate product that meets all the demands and needs of the buyer. As such, to procure can simply mean to buy, but with a far more analytical approach. When you buy an annuity, you are making an important decision that will affect your income during the rest of your life. An annuity once purchased cannot be reversed, and so buying an annuity is a decision that should be treated with some seriousness.
We may not realise it, but whenever we do buy something we are, in fact, procuring it. First of all we analyse our requirements, we try to understand what we need and why, next we determine a budget, consider different options, think about long term prospects and lasting power of the different options and then finally, make the purchase.
Therefore, don’t simply buy an Annuity; rather, look at it as procurement. After all, an annuity is not like purchasing an electric kettle or a pair of pillow covers. It is something that plays a significant role in retirement income; will have a huge impact on your financial security during retirement; and therefore has implications for the quality of the rest of your life.
When it is time to buy an annuity, pensioners have the right to explore the open market and shop around for the best annuity. This is known as the open market option. Despite this, a large proportion of people do not exercise this right and simply commit to the first annuity deal that is offered to them by their pension provider. Many people do not offer the same time and effort when they buy an annuity that they would to buying something far more insignificant!
Research has shown that shopping around for the best annuity is one of the most important steps in ensuring that you maximise your pension savings during retirement. Indeed, recent figures show that using the open market option to look for the best annuity deal could mean getting up to 46% more income during retirement. Not only that – shopping around also makes you aware of the different types of annuities available on the market so that you can choose one that truly suits your individual needs. Procurement involves reading reviews, understanding different options, shopping around, negotiating with sellers and finally, making a commitment to buy the product that best suits your requirements. These very same principles must be applied when you buy an annuity.