Adviser Guides
Guide to annuities - part 1
The upheavals of the financial markets of late have made the whole business much more fraught.
This two-part guide explains how advisers can secure the annual income their clients will need to live on.
Answers supplied by Mike Morrison, head of pensions development at Axa Wealth, Katherine Oxenham, business development director of Annuity Direct, Andrew Tully, pensions technical manager for MGM Advantage, and Nigel Barlow, director of technical product development marketing of Partnership.
IN THIS GUIDE
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Q: What is an annuity?
An annuity is basically an insurance contract.
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Q: Does my client have to buy an annuity?
There is no obligation to buy an annuity with a pension fund.
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Q: What are the different types of annuity available?
Annuities can be grouped in a number of ways, according to Mike Morrison, head of pensions development at Axa Wealth, and Nigel Barlow, director of...
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Q: What are the pros and cons of different annuities?
The big plus for annuities is that they provide a guaranteed income for life, according to Andrew Tully, pensions technical manager for MGM Advantage.
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Q: Should my client stick with their pension provider?
Clients have the right to exercise the ‘open market option’ and transfer their pension to a new annuity provider if this means they are getting a...
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Q: How do you shop around for an annuity?
You need to understand exactly what type of retirement income will best suit your client, and also if they have any lifestyle or medical issues.
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Q: How can I ensure the annuity meets my clients’ needs?
Nobody knows what the future will hold.
