Best Annuity Rates Calculator
Best Annuity Rates Calculator Guide…
If you want to get an idea of how much you can get from investing in an annuity, you can try using a best annuity rates calculator.
Annuity calculators are very helpful tools which you can find online, and can serve as guides in helping you find the best annuity rates in the UK.
Indeed, these tools can help you plan financially for your retirement by providing you with annuity quotes or estimated annuity returns from various companies based on the information you have provided.
There are different types of annuity rate calculators available, with some designed for specific types of annuities and some asking for more information than others.
The more information a calculator requires, the more accurate its projected rates are likely to be, since it takes more factors into consideration.
The most common types of information a best annuity rates calculator requires include:
- Gender
- Age or birth date
- Address or postcode
- Size of pension fund or purchase price
- Marital Status
- Age or birth date of spouse if married
- Desired escalation rate
- Payment frequency
- Payment timing – Advance or Arrears
- Desired guarantee period
Some calculators even ask questions, such as whether or not you smoke, are taking medications or are in poor health. If you answer yes to these, the calculator will provide you with enhanced annuity rates, which are some of the best annuity rates available.
Enhanced annuities are a special type of annuities reserved for those with reduced life expectancy, either due to a medical condition or to certain lifestyle habits like drinking and smoking. The average length of an enhanced annuity is about ten to fifteen years, and so its rates are 20% to 40% higher than the standard life pension annuity.
Before you use an annuity calculator, then, it is important to know what type of annuity you are thinking of getting and which features or options you would like. Annuities, after all, are very flexible and can be designed to ideally suit your financial needs and circumstances.
If you are not a risk taker, you can go for a fixed annuity, which means there is no escalation rate and the amount of the return remains the same, but if you want high returns that cover the rate of inflation, you should consider a variable annuity or an escalating annuity.
Having a spouse also does not automatically mean you should go for a joint annuity. Rather, you should consider the financial circumstances and life expectancy of your spouse, too, bearing in mind that if you get a joint annuity, you will get lower annuity rates.
To make sure you get the right type of annuity and the best annuity rates in the UK, ask for professional financial advice. While a best annuity rates calculator can help you in your financial planning, only a financial adviser can give you accurate annuity quotes and assist you in choosing the provider and product that is best for you.
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