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How Much Does a Pension Annuity Cost?
If you are getting close to retirement age, you may be thinking about looking into a pension annuity to ensure...
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f you are getting close to retirement age, you may be thinking about looking into a pension annuity to ensure that you are able to draw on your pension for the rest of your life. Effectively, you purchase an annuity from your pension, setting it up so that you have a secure income for the rest of your life. Regardless of the amount of your initial pension, you will continue to get paid from your annuity until the day that you die. You will also receive cost of living increases, and be able to have your pension pay out to your spouse or partner in the event of your death.
The base purchase price of most annuities is going to be around £100,000, but is going to paid as a series of payments totaling between £2,000 to £,7000 a month depending on the age of the person drawing on it, the area in which they live, and the choices that they made when selecting the policy.
To invest in an annuity, you simply contact one of the many companies offering them in the UK, and compare rates to get the best possible offer for your needs. It is advisable to speak with an accountant before choosing a plan to ensure it will pay for all of your needs in the future.
