RICHARD


ANNUITY PURCHASE

Richard, a self-employed joiner for 40 years, was struggling financially after illness curtailed his career.

Richard had received policy information from his pension provider but was confused at how he could actually take the benefits from his fund. He phoned us and was invited in for a meeting.

THE CHALLENGES

Having become frustrated at relying on his wife’s income to cover the bills each month, Richard wanted a secure income from his pension together with the peace of mind that the income he would receive would not change on a monthly basis.

He was unsure of the options available to him and wanted to know which one would be most suited to him given his circumstances.

WHAT WE DID

We initially provided Richard with information on the various options with which he could take his pension benefits. We discussed during our meetings how Income Drawdown works and how Annuities work, so that he had a clear understanding of each option, weighing up the pros and cons of each.

Due to the size of Richard’s fund and the ‘secure’ nature of income Richard wanted, we quickly established that an annuity would be the best option for him.

We obtained annuity rates from Richard’s existing provider and Richard was concerned that these were low, but was ultimately sure that he required an annuity.

After completing a lifestyle questionnaire we contacted the leading annuity providers and requested quotes for Richard based on the information he had provided.

We soon obtained quotes from the likes of M&G Advantage, Partnership, LV, Friends Life, Aviva and so on. We realised that Richard could obtain a fairly higher income via the open market.

We also established that due to Richard’s medical history he could apply for Enhanced rates.

THE RESULTS

We obtained the highest annual income available for Richard based on his circumstances and ensured that he received an income as soon as the annuity was set up.

The income was secure and enabled Richard not to worry about having a shortfall whilst being unemployed or having to erode his cash reserves.

By contacting us and having us set up his annuity, Richard obtained an increased income compared to what his existing provider offered of almost 39%.

The terms of his annuity meant that he had a 10 year guarantee on his fund and protected him and his wife for the next 10 years, in the event of his death.

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