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Which is the best venture Annuity?

Looking for the highest paying Annuity? We can help you with that, even though buying an Annuity is not as popular as it once was, purchasing an Annuity is still right for some people.

What is an annuity?

One of the most important decisions when you retire is how to make sure your pension pot gives you sufficient income to last you for the rest of your life. One of the options available to you is to swap your pension pot for an annuity. This is a type of insurance that allows you to trade your pension pot for a guaranteed regular income for the rest of your life.

What types of annuities are available?

There are many different types of annuities available, some of them are as follows:

  • Single life annuities – income is paid to you only which can cause problems if you partner outlives you.
  • Joint life annuities – income is paid to you initially, and then to your partner if you die.
  • Level annuities – pays the same amount of income for the rest of your life. Whilst this type of annuity usually offers the best rate, it does not take the impact of inflation into account.
  • Escalating annuities – pays out an increasing amount each year to protect your income from inflation. However, this type of annuity generally offers a much lower initial income when compared to a level annuity
  • Guaranteed annuity – income will be paid to you for a specific amount of time, such as 15 years, even if you die.
  • Fixed term annuity – income will stop after an initial period of time, such as five years, and then pay out a lump sum which you can use to purchase another annuity. This way you are not tied into an interest rate for the long term and can shop around for better deals.
  • Value protected annuities – an annuity which ensures that when you die, your beneficiaries receive a lump sum. The amount paid is the difference between what you paid for the annuity and how much it paid out. Therefore, if it paid out more than you purchased it for, nothing will be paid to the beneficiaries.

How much income will I receive from my annuity?

The income you will receive from your annuity will depend on the following factors:

  • Your age when you purchase the annuity
  • The annuity interest rate
  • How much money you have in your pension pot
  • How you want your income to be paid
  • Your health and lifestyle

Usually, people with health issues tend to get a better annuity rate than people in good health. This is because the insurer is assuming that they will not have to make payments to you for as long.

Do I have to pay tax on my annuity?

Any money you receive from an annuity is treated as income and you will therefore have to pay income tax on it.

What happens to my annuity if I die?

If you have purchased a joint life, value protected or guaranteed annuity, your partner will continue to receive the income either tax free if you die before the age of 75 or at their marginal rate of income tax if you die after age 75.

For any other type of annuity, the insurer will keep anything that is left over when you die.

Things to consider before purchasing an annuity

There are many things to consider before purchasing an annuity, not least if this is the right way to unlock your pension income. If an annuity is the best option, then you may wish to consider the following:

  • The type of annuity which is best suited to your needs – for example, you should consider whether you would like your partner to receive an income if you die
  • The best rates – it is important to shop around for the best annuity rates as this can have a huge impact on the amount of income you will receive
  • The annuity period – would you like to guarantee your retirement income for the rest of your life or just a set period of time.

Woodward Financials were awarded best wealth management firm in 2021 and again in 2022 who have a team of advisers ready to help you answer these questions and guide you through the right annuity for you.

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For more information you can contact David on 01753 839348 or email