When you are old enough to have to consider pension options, one such option will be the chance to consider an annuity: a monthly income paid for life that is traded for some part of your Pension fund.
Generally speaking, the firm that provides your pension will also provide your annuity. The reason for this is that a lot of them don’t tell you that you are always free to shop around in the open market for a better deal on your annuity rate. This could mean increased income for the investing the same amount.
It’s hard to believe, but many people believe the lie that the pension provided by the UK State will be enough to live on. You better wake up! Currently, the State Pension cannot be a sole source of income for a UK retiree. It would be prudent to receive some pension advice in the present, since the future – as close as 2015 – seems likely to be worse than even the state of things in 1980.
History: Initially, the UK State Pension paid out means-tested pensions back in 1908 even though there were no prior payers into the program. The system has always needed – and continues to need – new taxpayers to pay for current pensioners.
National Insurance was introduced by the Post-War Labour government. The original concept was that all citizens would pay for National Insurance so that everyone could get the standard United Kingdom Pension and live a reasonable standard of living in old age.
After October 2008 this drops to 3 months backdating so claim now so you don’t miss out on this money.
Unfortunately many people do not apply for the benefit as they find it confusing or intrusive, in fact there are thought to be about 1.5 million people that are entitled to the money but are not claiming, so if you, or your friends and family, are over 60 please check to see if you could getting this extra money.
How Much Could You Claim?
