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.