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Dedicated UK Customer Services At My Pension Expert the first thing we will do is find you the best possible pension income quote based on YOUR personal circumstances, such as your age, sex, heath and lifestyle factors. Whatever this amounts to, the Flexible Annuity then allows you to choose how much of this income you want to take ranging from 50% right up to 120%. The amount of income you choose is fixed for a specified period and must be reviewed at least every five years, so you can change the amount of income according to your needs as you go on through retirement.
Taking the increased income isn’t for everybody but for some people it may be the right choice for example for someone with quickly diminishing health wanting to enjoy retirement while still relatively fit or another person who has other pensions available at a later date wanting to make the most of available pensions pots now.
We’re all living longer
You won’t be surprised to learn that, in general, people are living longer thanks to medical advances and our healthier lifestyles. According to the Office of National Statistics, the average 65 year old man can expect to live to 82 and a woman can expect to live until she is 85. Great news! But what you also need to consider is that according to a report by the Institute for Fiscal Studies*, pensioner inflation rates are ten times higher than for non-pensioners. This is because the greater proportion of the goods you buy when you are older, such as fuel and other household bills, are more susceptible to price increases. So the longer you live, the more your income in retirement will be affected by inflation. * Source MGM Advantage September 2009
The Flexible Annuity is designed to be as flexible as you want your retirement to be and its aim is to grow in value over time. Providing you’re comfortable with the fact that this is an investment backed annuity and that its value can go down as well as up, The Flexible Annuity could really set your retirement income free.
* Assuming that the rate offered by your current provider is the worst standard rate available.
** Oxford Economics Study. The macroeconomic impact of shopping around for retirement income – December 2009 – In 2009, a 65yr old male and female about to purchase a fixed income can increase their annual income after retirement by switching from the lowest to the highest paying provider by an average of 19% and 22%, respectively. Further 20% increase gained by taking maximum allowable income from a flexible annuity.
^ Source MGM Advantage March 2010. Based upon a male age 65, on a single life, monthly in advance, no guarantee on a level basis. Enhancement for lung cancer with radiotherapy and chemotherapy. Further 20% increase gained by taking maximum allowable income from a flexible annuity.
^^ Source MGM Advantage March 2010. Based upon a male age 65, on a single life, monthly in advance, no guarantee on a level basis. Enhancement for lung cancer which has spread to the bones with radiotherapy and chemotherapy. Further 20% increase gained by taking maximum allowable income from a flexible annuity.
Flexible Annuity
- A regular income for the rest of your life that has the potential to grow
- You choose the level of income you want (within the range we offer) at different stages of your retirement
- You can choose a starting income up to 20% higher than you’d get with a level conventional annuity (this may mean taking a lower income at a later stage)
- Your income is fixed for a specified period and must be reviewed at least every five year allowing you to plan your finances
- A higher income if you’ve got a poor medical history or certain medical conditions
- A Minimum Income Guarantee that you can rely on from day one
- You can make sure your loved ones are provided for when you die
- The value of investments and income from the can fall as well as rise and you may not get back the full amount invested
- Not all annuity companies offer this option.
