Today there are a variety of investment plans available in the market. Though it is a fairly large choice but it sometimes helps to grow some amount of confusion among the consumer.
But among all of them one of the most important among them is the annuities and the fixed annuities is the popular among the elderly and the retired persons.
There are two varieties of fixed annuity is available in the market, they are both fixed and variable. The fixed are available in two forms, deferred and immediate annuities. The deferred annuity pays you after the maturity and the immediate one, pays almost immediately and as per the rules of the market. Though the immediate annuity offers better returns, since it is related to the risks of the market. The deferred ones are considered very safe since it attracts tax, only when it is withdrawn from investment.
Over the last few years, old person’s retiring in the UK are accepting lower annuity rates, since it is prevailing there. These rates are being provided by the present pension providers. If someone prefers to go for the market linked immediate annuity, then he will have to for the immediate annuity.It may increase the income by as much as 30%. It is on the dependency of the various market related information along with various global situations.
There is nothing in the changing of the pension annuity, it is quite constant. It generally remains unaltered and the annuities rates are quite fixed. Though there are sometimes availability of the bonus options and other special, but they are mostly related to the special festive spirit. It is mostly related to special occasions of Christmas and other occasions.
In these special times, there is some extra benefits available to the consumer and giving some new annuities rates.