tag:blogger.com,1999:blog-43692245184803341672012-02-15T23:17:46.086-08:00Louis Blackhttp://www.blogger.com/profile/13002915367244733095noreply@blogger.comBlogger11100tag:blogger.com,1999:blog-4369224518480334167.post-74991555905364852522009-03-25T16:23:00.000-07:002009-03-26T07:02:19.934-07:00<span style="font-weight: bold;">What is an annuity?</span><br /><br />Switching to an annuity could boost your pension by thousands of dollars a year or could allow you to invest in the perfect type of annuity that better suits your personal needs.<br /><br />An annuity is a kind of insurance policy that provides you with a regular fixed income in exchange for a lump sum.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.valtrk.com/url/track.aspx?adid=2138&amp;lpuid=1&amp;affid=5137&amp;subid=bloggermainimg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 320px; height: 318px;" src="http://4.bp.blogspot.com/_dVLxEdCvDkY/ScrETvV1ybI/AAAAAAAAABg/cQkB02bjaos/s320/Picture+10.png" alt="" id="BLOGGER_PHOTO_ID_5317278153468922290" border="0" /></a><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />When you reach retirement age you have to turn the capital that has built up in your pension policy or additional voluntary contributions (AVCs) into a regular income. You are able take up to a quarter of your pension pot as a tax-free lump sum, but the rest must ulitmately be converted into an 'annuity'.<br /><br /><span style="font-weight: bold;">How do they work?</span><br /><br />In a way, annuities work as life insurance 'in reverse'. The insurance company that sells you the annuity estimates how long you will live and then uses this as a basis for the amount it will pay you.<br /><br />Everybody who has a pension and has built up a lump sum with their provider must buy an annuity by the time they reach 75.<br /><br />The exceptions are those who are part of a workplace final salary scheme, but, as these are becoming less common, most people are currently faced with the annuity option.<br /><br />Over the past few years, annuity rates have fallen sharply and a 65-year-old man now earns a typical return of just 8% from his pension fund. Therefore, with a pension fund worth $100,000 he would receive an annual income of $8,000.<br /><br />You do not have to take the annuity offered by your existing pension company. Annuity rates vary between companies so you need to check which one will give you the best deal.<br /><br /><span style="font-weight: bold;">I need to find out more</span>!<br /><br />To help you take advantage of the long term benefits that an annuity can bring mylocaladvisor.org have put together a totally FREE guide to help you make the right choices to grow your nest egg. It takes a minute to fill in and you will receive the guide straight away.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://2.bp.blogspot.com/_dVLxEdCvDkY/ScrCZYfUwXI/AAAAAAAAABQ/kKwicOmPLWY/s1600-h/Picture+4.png"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 320px; height: 38px;" src="http://2.bp.blogspot.com/_dVLxEdCvDkY/ScrCZYfUwXI/AAAAAAAAABQ/kKwicOmPLWY/s320/Picture+4.png" alt="" id="BLOGGER_PHOTO_ID_5317276051390644594" border="0" /></a><br /><br /><br />My Local Advisor have recently been featured on CNN, Forbes, and in the Wall Street Journal, and this guide is highly recommended to help you decide if an annuity is right for you.<br /><br /><a style="font-weight: bold;" href="http://www.valtrk.com/url/track.aspx?adid=2138&amp;lpuid=1&amp;affid=5137&amp;subid=blogger1">You can get the Free Guide here:</a><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.valtrk.com/url/track.aspx?adid=2138&amp;lpuid=1&amp;affid=5137&amp;subid=bloggermainimgbot"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 320px; height: 318px;" src="http://4.bp.blogspot.com/_dVLxEdCvDkY/ScrETvV1ybI/AAAAAAAAABg/cQkB02bjaos/s320/Picture+10.png" alt="" id="BLOGGER_PHOTO_ID_5317278153468922290" border="0" /></a><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.valtrk.com/url/track.aspx?adid=2138&amp;lpuid=1&amp;affid=5137&amp;subid=bloggerimg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 202px; height: 44px;" src="http://4.bp.blogspot.com/_dVLxEdCvDkY/ScrDSgtBXuI/AAAAAAAAABY/68MBwPq802E/s320/Picture+6.png" alt="" id="BLOGGER_PHOTO_ID_5317277032848121570" border="0" /></a><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/4369224518480334167-7499155590536485252?l=whatisanannuity.blogspot.com' alt='' /></div>Louis Blackhttp://www.blogger.com/profile/13002915367244733095noreply@blogger.com0