What is an Annuity?

An annuity is the purchase of a guaranteed lifetime income. They are typically bought with pension funds at retirement. The capital (the purchase price) is given up in exchange for a regular income that will last the rest of your life.

Annuities are one of the few financial products that still contain guarantees. Modern annuities take into account your health and other lifestyle factors which can potentially enhance your income.

Lifetime Annuities

Purchasing an annuity with your pension pot has been the staple of retirement planning for many years. But with more flexible options now common, what are the benefits of locking your money away forever with an annuity?
 
To begin, annuity income is guaranteed, so you will never have to worry about stock market performance again.
 
Other benefits, such as widow(ers) pension can be built in, and you can buy protection from inflation too.

 

Finally, many plans now take into account your health and lifestyle factors which may increase the income available.

Why use BBi Financial Planning?

Chartered

Our advisers have obtained the highest level of qualification in UK financial services

Experienced

With decades of experience between them our advisers have seen it all.

Technology

We use the best tools available to make sure our research is as good as it gets.

Compliant

We invest heavily in expert compliance support to ensure our staff and processes are always under scruitiny.

Connected

We have relationships with tax and legal experts to provide you with a holistic support network.

Available

A service agreement with us means you will be able to speak to your chartered adviser. You won’t be stranded with someone else.

Benefits of an Annuity

Annuities provide guaranteed income for the rest of your life. This guarantee comes at a cost, so the income may be lower than you could get from a drawdown plan, but on the other hand, you can never run out of money and are immune to investment returns.
 
Many clients prefer the flexibility of income drawdown over the certainty of an annuity, but there is no reason you can’t have both. It’s possible to buy an annuity income to cover essential spending and leave the rest of your money in income drawdown to benefit from future growth.
 
We can talk you through the pros and cons of each option.

Why choose BBi Financial Planning for income protection insurance?

Independent Advisers

We are proud of our independence.
It means no-one tells us what to do but you.
You can trust us to put your needs and goals first.

Chartered Professionals

We are a chartered firm and our advisers hold chartered status.
This puts us in the small elite number of firms in the UK, and means we uphold the highest standards.

Bespoke Cover

Our advisers will take the time to understand exactly what you need protected and why, and advise you on the most suitable options for your budget.

Is an annuity right for you?

Guaranteed income

Buying an annuity is a one-time purchase. You give up your capital (the purchase price) in exchange for a lifetime, guaranteed income.
 
You never have to worry about investment returns again, but you can’t get the money back etiher.
 
Think carefully about what you need.

Enhanced options available

Enhanced annuities take into account your life expectancy by considering your health, medication and lifestyle factors.
 
This could result in a higher income than you could have otherwise acheived.
 
There’s no additional charge for this service.

Set it and forget it

There is no on-going managment needed for an annuity, so they tend to be less expensive than the alternative of income drawdown.

What are the benefits of annuities?

Annuities provide valuable guarantees in exchange for the loss of capital and a typically lower income than you could achieve from an income drawdown plan. No guarantee comes without a cost, after all.
 
The right option for you will depend on your circumstances, needs and budget. We can help you.

Guaranteed income

Certainty to help you budget

Annuity lifetime income is guaranteed, so you don’t have to worry about the effects of investment returns on your lifestyle.

Enhanced optionss available

Personalised underwriting for greater income

By the time we retire we are likely to have picked up some medical conditions along the way, which could impact our longevity.
 
Annuity underwriting can take this into account and pay a higher income if you have a risk of a lower life expectancy.

Protect your income for longer

Flexible setup, guaranteed payments

A potential downside to buying an annuity is that you don’t get the money back if you die.

We can build in a guaranteed payment term, and an ongoing income for your partner, to ensure the money doesn’t just vanish if you die young.

Contact Details

BBi Financial Planning

The Old Court House

191 High Road

South Woodford

London

E18 2QF

Tel: 020 8559 2111

Email: enquiries@bbifp.com

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BBi Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority. Our registration no. is 652403.