Is my annuity safe?
Get reliable information to make an informative decision
Are there risks involved?
There is a service known as the Financial Services Compensation Scheme (FSCS). They are responsible for holding annuity companies to account and in the unlikely event of failure, they will step in to pay 90% of the annuity value.
Since the formation of the organisation in 2001, there have been no annuity company failures in the UK, even during the 2008 financial crisis. Should an annuity company ever be declared in default, the FSCS would negotiate to move the annuity to another company or step in to offer compensation.
How can I protect my annuity?
There are annuity options that come from certain providers which can be valuable to policy holders. A person buying an annuity can pay more to protect a specified portion, e.g. 50% of the purchase price if they die soon afterwards. This means on the annuitant’s death the insurance company would pay half the fund back minus any annuity payments already paid out.
Want more information?
Retirement options should never be decided on a whim, they deserve careful consideration. We believe that all our customers should receive the same service and options that we ourselves want in our retirement. If you’re unsure about what is right for you, or you simply want further information to help you make the right decision please talk to us.