Level Annuities are also called standard annuities or ordinary annuities. Level annuities are the simplest annuity product. In exchange for your “pension pot” (after any tax free cash entitlements have been exercised the sum you pay to the annuity company at the start), the annuity company guarantees to pay you a fixed amount every month, quarter or year, for the rest of your life. Since the sum they pay you is fixed at the outset, the payments are “level” throughout the period of the annuity. As the regular payments do not rise with either inflation or investment performance, what you can buy each month with your level pension annuity will decrease over time if inflation persists. If you come from a short-living family and expect to live for only a short retirement, a Level Annuity (possibly with a widow’s pension) may be the best option for your circumstances.
Your attitude to risk is important. Please also read the page on Index Linked Annuities.
You may buy more than one annuity product with your pension pot. Indeed, some of your pension pot can be postponed until you are 75 or put into Income Draw Down (which we discuss separately). We conduct a thorough review of your circumstances and your attitude to risk, before we present a unique plan to meet your needs. We may recommend a mix. A Level Annuity can be an important element in the mix, but the reasons for this are too complex to set out here. When we meet, we will give you clear, professional advice for your personal circumstances.
Our initial appointment is free of charge – no matter how long it takes. We are happy to meet at your home or office, or at one of our meeting places. For clients who live further away we are pioneering Skype conference calls. Taking a little bit of time now can improve your standard of living in retirement quite substantially, especially if you qualify for an Impaired Life Annuity. Call us now to book an appointment to start the process. It is your first step to a better retirement.