Guaranteed Annuity Rates (GAR)

Guaranteed Annuity Rates, often referred to as golden annuities is one of the most important factors to consider in transferring your pension and can boost your retirement income by as much as 40%.

At retirement, your pension fund has to be used to provide you with an income, for the majority an annuity is the best way to provide this and will depend on various factors, such as your age, sex and health. However, some of the older style pensions (typically those started before July 88 but can also be found in policies started after this date) offer a much higher retirement income.

Finding out if your pension offers a GAR is not as easy as it sounds as its not always as simple as asking if you have a guaranteed annuity rate on your policy. Pension providers can call them by a whole raft of different names such as guaranteed annuity options, guaranteed minimum annuity rates, guaranteed rates or minimum annuity rates

The downside is that you may be limited in when the guarantees kick in, such as taking benefits from age 60 or only able to take an annuity with inflation proofing or a spouses pension.

Seek independent advice
Independent advice is the only true way of finding out what your options are and losing a valuable guaranteed annuity rate could cost you the equivalent of 40% of your fund's value.