If you are at the stage of life, where you are having is to search for an annuity the chances are you are somewhat confused. Annuities are something most people find very difficult to understand. Using an annuity calculator can help you get a basic understanding of what annuities mean for you.
What Using an Annuity Calculator Can Do For You
A good annuity calculator will give you an understanding of how much of an income you can expect to receive by using your existing pension pot to buy an annuity. They are simple to use and usually only require some very basic details from you.
Finding a Good Quality Annuity Calculator
There are several kinds of annuity calculators available. You will find them mostly online; however, some financial advisers also offer paper-based ones. But, as a starting point, the online ones are best and are far more convenient for you to use.
Most annuity providers include an annuity calculator on their own website. These are great, but you have to bear in mind that they will only bring you back the figures for their own products. In order to get the best value for money you need to shop around for your annuity and compare several different annuity products. The process of going through each provider’s website and using their individual calculators is very time consuming and tedious.
Fortunately, there are companies that specialise in searching the annuities market on your behalf. When you use their annuity calculator, the results that they bring back reflect what is available for people in your particular situation from across the market.
It is important to bear in mind that an annuity calculator will only give you an estimate. You should never sign up with an annuity provider purely based on their results. Instead, you need to ask for a written quote and if you are still interested read the contract thoroughly. If you do not understand the contract, seek help from independent financial advisers. Deciding upon an annuity is too important a decision to be left to chance.
Age Partnership has a great annuity calculator on their website. They regularly research the annuity market to make their calculator more accurate than many other calculators.