A guaranteed annuity pays a fixed income for life. Obviously the affect of inflation means that over time such an annuity loses its purchasing power.
Some Personal Pensions called Retirement Annuities contain Guaranteed Annuity Rates. These rates are written into the contract and mean that you can convert your fund into an annuity at a much higher rate than is currently available. If you have such a policy it is very valuable. Nicholls Stevens make sure that when a client asks for pension advice that we check all their policies to see if guaranteed annuity rates apply
We will check to see when this guarnateed annuity applies and make sure that the client exercises the option at the right time. It may be that it will be impossible to select a pension which continues to a spouse or partners, we will advise you as to whether it may be worth taking this and re-arranging other investments to compensate for the loss of the pension.