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April 2015 Pension Changes

The Benefit of Shopping Around

How you can improve your retirement income!

October 2016


You do not have to buy a retirement income product (e.g. an annuity) with Sanlam Investments and Pensions, and by shopping around you could increase the amount of income you receive in retirement.
 
There are a number of websites (details of which are given in our Shopping Around Guide) that offer a dedicated annuity shopping around service, allowing you to compare and purchase different annuity products and options offered by different providers; just like there are with motor and travel insurance.
 
The table below demonstrates the value of shopping around. It compares the annuity that can be purchased in various scenarios with Sanlam Investments and Pensions, against the best rate that can be secured by shopping around. 

 

 

Details of Person purchasing the annuity

 

Pension Fund Amount after Payment of any Pension Commencement Lump Sum taken

£25,000

£60,000

£100,000



Person aged 60 

Best Rate

£83

Best Rate

£210

Best Rate

£346

Sanlam

£75

Sanlam

£180

Sanlam

£300

Extra Income

£8

Extra Income

£30

Extra Income

£46

 

Person aged 65

Best Rate

£98

Best Rate

£246

Best Rate

£407

Sanlam

£88

Sanlam

£211

Sanlam

£352

Extra Income

£10

Extra Income

£35

Extra Income

£55



The above figures are based on purchasing a single life, level pension, payable monthly with a 5 year guarantee period, for a person of around average build. The figures shown are for a non-smoker, who drinks 7 units of alcohol a week and who has no diagnosed medical problems and lives in the BS5 region of Bristol. The gross amount of the annuity is shown in whole pounds before deduction of any income tax.
 
The “best rate” quoted above is based on annuity rates obtained from the independent comparison website for standard annuities published by the Money Advice Service, which can be found at www.moneyadviceservice.org.uk/en/categories/approaching-retirement
 
You should note that if you have several pension funds, you may be able to secure a better annuity rate by transferring them into a single pot before taking benefits. 
 
IMPORTANT: If you have health problems or are a smoker, you may be able to secure annuity rates that are preferential to those shown in the above table, although Sanlam Investments and Pensions do not offer such enhanced annuities. 

The figures quoted are correct as at the date of issue (shown below), although it should be noted that annuity rates are subject to change. 

Date Issued: 3 October 2016  

Important...

Sanlam Investments and Pensions are not able to provide any advice or to recommend any particular course of action.
Whilst we endeavour to ensure that the information provided here is accurate at the date shown, we do not accept any liability for any loss or damage of any kind which may be suffered or incurred by you or any third party directly or indirectly as a result of reliance being placed on the information provided. 

Investing involves risk and the value of investments and the income from them may fall as well as rise and are not guaranteed. Investors may not get back the original amount invested.