Anyone coming up to retirement age who is thinking about buying an annuity may at some point come across the phrase annuity rates calculator. These are online tools that allow potential annuitants to get an approximate idea of what kind of annuity rate they might get with their pension fund. One thing they certainly do not do is give accurate annuity quotes, as this requires greater information and probing of the individual about their individual circumstances. Although some annuity calculators can provide up to date rates from providers, they cannot ascertain finite medical details that are needed in order to provide a comprehensive quotation.
They can be useful as a guide as you are able to enter various options such as..
-Single or Joint Annuity
-Location
-Gender
-Fund Size
These variables can alter the rate and approximate annual income, which is why they can be useful in assisting retirees in deciding what type of annuity to choose. For example a joint-life annuity will allow your annuity income to be passed to your partner or spouse when you pass away. Guarantee periods will allow your income to be paid for a specified period of time should you pass away soon after buying your annuity. On both these options you starting amount is normally lower compared with a standard level annuity. One of the major drawbacks of an annuity rates calculator is that you cannot find out if you are eligible for an enhanced annuity which will pay a higher rate than a conventional annuity. The only way this can be done is speaking to an IFA or an annuity specialist who can they take down medical information such as any past or present health conditions. If you smoke or drink to the extent it can be considered to impact on life expectancy then this could also qualify your for enhancements.
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