Do you need a financial adviser to buy an annuity?
An annuity converts pension money into guaranteed income. Advice is not always required, but the decision can be difficult to reverse and shopping around matters.
What is an annuity?
An annuity is one way to turn defined contribution pension savings into guaranteed retirement income. Other options include drawdown and taking pension money as lump sums.
Check existing pension guarantees first
MoneyHelper recommends checking whether an existing pension includes a guaranteed annuity rate. A valuable guarantee could provide more income than a new annuity available on the open market.
When might advice help?
Advice can be useful where you need to compare annuity income with drawdown, decide how much pension to annuitise, coordinate several pension pots or understand how the choice fits a spouse or household plan.
Do not automatically accept the current provider's offer
Shopping around can matter because different providers and product features can produce different income levels. Health and lifestyle information can also affect some annuity quotations.