Why Use An Annuity Calculator
In the run-up to retirement age, one has to mind a number of things. One important thing is how to guarantee oneself as high an annuity as possible. After all, quality of life depends to a large degree on available financing. To ensure that you have it so as to enjoy inasmuch as possible the days to come, show prudence and shop around for annuity rates. Many annuity providers as well as comparison websites will help you do this exercise by means of annuity calculators.
The annuity calculator of no provider will deliver an instant result for you. Since the calculator needs to check for annuity rates pegged to your specific pension fund value and do so across the board, you will have to wait for a while. Individual providers will come up with an annuity rate only after they obtain information about the going rate of your current pension provider. They also need to inquire about your health condition. If they are to offer you multiple rates for each individual type of annuity, calculations will make your waiting time a bit longer.
Generally, the details you need to enter in your annuity calculator are your personal details, age, existing pension savings and medical conditions. This will help providers get the overall picture, access the relevant databases and, given the circumstances, form an objective annuity rate.
Type of annuity
If you already know the type of annuity you would prefer to receive in time, you have to specify it in the annuity calculator form. Would you want it to be level (fixed sum irrespective of inflation) or increasing (rising along with inflation)? You should also decide whether you would like to draw a certain amount off your pension savings early or else opt nominating a person to receive your pension for some time should you die early. All these consideration will have an impact on your annuity rate.
Tips for when you shop around
Once you choose your annuity, it stays with you till it ends and you can't change your mind so choosing the right option is very important. The most important details that you have to think through first are:
- lifetime of fixed term annuity
- if you want to withdraw cash from your pension pot before you die or not (in case you want to provide income for someone else after your death).
With Age Partnership, you have information about the basic annuity options, an annuity guide a rate tracker alongside the annuity calculator. Therefore, it is a good place to get full information about what's on the market and at what rates.
CompareAnnuity can give you an idea what the main annuity providers have for you. Just fill out the form and wait for the results of the best to come. It is worth the wait. Statistics see that people shopping around for annuity rates have racked up 40% to 70% gains.
Hargreaves Lansdown offers a calculator for those willing to know whether annuity delay will earn you more income or, just on the opposite, will see you stripped off part of it.