Deferring an annuity – is it worth the gamble?

You may be considering delaying the purchase of an annuity.  The volatile nature of stock markets and pension fund performance are just two factors that may make deferring seem an attractive option.

So is now the right time to defer or should you purchase an annuity?

There are numerous factors that need to be taken into account in deciding if now is the right time to buy or defer an annuity.  But one area that may be overlooked is your health status.

If you currently qualify for an enhanced annuity, there are additional considerations to take into account that may not be immediately obvious – what are the implications if your health improves? What if it deteriorates?

If you do not currently qualify for an enhanced annuity, then you may want to look at the new Fixed Term Annuity contracts* – which can includes a conversion feature enabling conversion to an enhanced annuity should your health deteriorate at any time during the fixed term.

For Free advice on your options, please call our Advice Line Free on 0800 0842265.

*Fixed term annuity contracts pay a fixed income for a fixed term then have a guaranteed maturity value at the end of the term, which can be used to buy another fixed term annuity, a lifetime annuity or a drawdown contract.  These contracts can be very effective if your health deteriorates because you can still obtain enhanced rates that would not have been available at outset.

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