BA for annuity information

FINANCE

Annuity

Something for a rainy day

When you retire you want as much money as you can get so how is this achieved. One way is to take out an annuity. If you have a company pension or money-purchase company pension you should buy an annuity when you retire. An annuity pays an annual income until you die and is often a person's biggest financial decision.

You should buy your annuity from a firm offering the best deal. The best deal often pays 25% more than the worst, so shop around. On a 100,000 pension fund invested at 9% a man aged 65 could earn 9,000 which may be 2,500 more than the worst deal. Older people and those in poor health and are smokers can earn higher rates of interest.

For quotations contact the Annuity Bureau by telephoning 020 7902 2300 or Annuity Direct telephone 0500 506575. Think carefully before investing money and take independent advice if in any doubt.

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