You Ask, We Answer – Do I need a financial advisor to buy an annuity?
6 Oct 2015 | COMMENTS: 0 | Author: Ryan Smith | we answer
The purchase of an annuity – a product that provides you a guaranteed income for life in retirement, paid for using your pension pot – is a decision that should not be taken lightly. Once entered into an annuity contract, you are entered in for life.
Earlier this year, new ‘pension freedoms’ were introduced, that meant the vast majority of retirees were no longer forced into the purchase of an annuity.
Alternative methods such as trivial commutation and income drawdown allow flexible access to pension savings, and are now viable possibilities for most retirees.
And while formal advice is not an absolute necessity for the purchase of an annuity, it’s not advised that such an important financial decision be made without the aid of an FA.
Annuity rates are currently at record lows, but for many the security of a guaranteed income will prove to be the best decision for them. There are also combinations of annuity and drawdown products that should be considered.
By seeking the advice of a financial advisor, they can guide you to make the best decision for your own personal circumstances.