Reaching the magic age of 75

  Not everyone believes that they will live to see the age of 75, but statistically as a large proportion of people will, it is important that your finances are in order, particularly when it comes to pension planning.

  Currently the benefits available from private pension plans (not State Benefits) can be taken from age 50 up to the age of 75, although some employers’ occupational pension schemes may have different minimum retirement ages in place.

  From the 6th April 2010, the minimum age for taking benefits is rising to age 55, therefore if you are currently between the ages of 50 and 55 and are considering retiring, it is important that you take Independent Financial advice, without delay, as to what impact this change could make to you.

  Similarly, the ability to take up to 25% of your pension fund as a tax-free cash lump sum is only available up to the age of 75, so if you don’t use it, you will lose it.

Can you afford to retire?

  Knowing how much pension income you could potentially receive is of paramount importance if you are considering retiring at any time up to the age of 75.

  A forecast of State Benefits can be obtained directly from the Department of Work and Pensions by obtaining form BR19 (from a local Post Office) or you can log onto www.direct.gov.uk

  Most private pension plans provide a value of what your pension fund is worth and a ‘projected income’ using a set of assumptions provided by the Regulator, The Financial Services Authority. If you would like to know how much income your pension fund could provide you today, taking into account your current state of health, you can use the Annuity Income Calculator

  The annuity calculator is free to use and will show you how lifestyle and medical conditions can increase the amount of income your pension fund can provide. You can quote as many times as you wish to see how the different options available affect the amount of pension income payable.

  Alternatively, if you would prefer to speak to someone with regard to your own personal circumstances and requirements, you can contact the annuity helpdesk on 0845 015 0221 between the hours of 9am to 5pm Monday to Friday.

Annuities

  If you are living with a heart condition, or any other medical condition, it is possible that you may be able to benefit from a special type of annuity which offers a higher level of income than conventional annuities. This is due to the pension income payable to you being ‘enhanced’ to reflect your lifestyle, state of health and life expectancy.

  By using the annuity service offered through Unique, you can find out whether you are eligible for a higher level of pension income compared to the levels offered by conventional annuity providers.

  Unique has teamed up with Heath Lambert Consulting Ltd (HLC) to provide access to this comprehensive enhanced annuity service.

  When you make the decision to start drawing an income from your pension fund you can normally take part of it, typically up to 25%, as a tax free lump sum. You must then convert the remainder of the fund into an annuity. An annuity is provided by an insurance company and pays you a guaranteed regular income for the rest of your life. However, your choice of which insurance company to provide your annuity is crucial, because once the annuity has started you cannot change your mind – it is an irreversible decision.

The Open Market Option

It’s important to shop around

  It is very unlikely that you will have to stay with your existing pension provider when you want to buy an annuity, and not all annuity providers offer similar benefits – the difference between the highest and lowest annuity incomes available can be significant. In fact, annuity rates can even vary within one provider as the rates can differ according to the annuity options you choose.

  Shopping around for an annuity is known as using the ‘Open Market Option’ meaning you have the choice to purchase your pension income from another provider if you wish.

How to use this service

  The HLC Annuity Solutions service provides you with the means of finding one of the most competitive annuity rates at retirement. The aim is to maximise the income available to you from your existing pension fund(s).

  You can speak to one of HLC’s qualified advisers on the telephone or use our online search facility that allows you to input your personal details, select the annuity basis relevant to your own particular circumstances and then find the best annuity rate available to you right now.

Important information

  It is important to understand that in providing this service HLC will not be providing you with any financial advice or a personal recommendation. The service allows you to select the basis of the annuity and then search the market for a competitive product matching your requirements. The service is therefore provided on an execution-only basis, meaning that you confirm that you have neither sought nor received a personal recommendation.

  For more information on how to use the annuity service, or to start searching the market for the best deals around, simply click here, telephone 0845 015 0221 or e-mail annuitydesk@heathlambert.com quoting British Cardiac Patients Association.

  Unique is a trading name of Heath Lambert Limited (HLL) and Heath Lambert Consulting Ltd (HLC).
  HLL is authorised and regulated by the Financial Services Authority. Registered office: 133 Houndsditch, London EC3A 7AH. Registered No: 1199129 England and Wales.
  HLC is authorised and regulated by the Financial Services Authority and are members of the Society of Pension Consultants. Registered address: 133 Houndsditch, London EC3A 7AH.