Legal & General's New Guide to Getting an Annuity Quote Helps the Over 55s Better Understand Their Annuity Options

Understanding your pension options is always important and Legal & General has just revealed their new guide and checklist to help those nearing retirement feel more prepared before requesting a quote.

Mike Batty, Managing Director – Home Finance, Product & Strategy Director- Retail Retirement, L&G says: “We know that the stability of a guaranteed income has a real impact on wellbeing, giving retirees the confidence and peace of mind to enjoy their retirement. While the annuity market is growing, navigating the options can feel complex. Our guide and checklist are designed to cut through that complexity and make the process more straightforward.

“We want to empower people to see how an annuity can form the secure foundation of a flexible, blended retirement plan. By covering essential costs, it allows other investments to provide for more of life’s wants. Ultimately, our goal is to give people the clarity and confidence to build the future that’s right for them.”

Research highlights retirement wellbeing benefits

Beyond providing a guaranteed income, annuities may also have a wider impact on how people experience retirement. Research from L&G and the Happiness Research Institute found retirees with an annuity are more likely to report lower stress levels (51%) and higher financial confidence (24% versus 21% among those without one).

The study of 3,000 UK retirees, which explored the relationship between retirement happiness and annuities, uncovered what motivates people to choose an annuity.

Almost a quarter (23%) said the appeal of receiving a regular income for life was a key reason for choosing one. Meanwhile: 16% said an annuity makes budgeting easier and 13% said it provides greater control over their finances.

The different types of guaranteed retirement income L&G provide include:

A Pension Annuity: Keeps you secure with payments for a lifetime.
Fixed Term Retirement Plans: Choose an income for a set period allowing for flexibility or a bridging income. You can also opt to receive a cash sum at the end.

More details on Pension Annuity options including enhanced, joint and escalating annuities can be found on L&G’s website. Fixed Term Annuity details can be found here.

Researching options before requesting an annuity quote is essential to ensure an understanding of what’s available and what suits you best. It also helps prepare questions for a financial adviser and choose the right plan for your circumstances.

What the checklist covers

The downloadable checklist helps the over 55s to have all the correct information to hand for when the time comes to request an annuity quote.

The checklist asks potential annuitants:

Pension information: How much of your pension pot you would like to use, whether there are penalties for withdrawing money, and whether there are any implications when changing providers.
Your medical history: When buying a Pension Annuity, you will need to highlight your height, weight, how much alcohol you consume, whether you smoke and if you have any conditions. Some medical conditions could lead to receiving a higher income called an enhanced annuity.
Your product preferences: How you would like your annuity to work for example, do you want a lifetime or fixed term plan?

A quote with L&G will provide a better understanding of retirement income and how to plan and even highlight if there is a better price elsewhere via Annuity Ready, our lifetime annuity comparison service. An annuity income will depend on factors such as age, health and what the current annuity rates are, making them completely unique to the individual.

How to get an annuity quote

Getting an annuity quote with L&G is straightforward and can be done online using a laptop, tablet, or smartphone.

Register: Fill out all your details and activate your account.
Get financial advice: Although optional, getting financial advice and guidance will help locate the right plan for you and make it feel less daunting. L&G has an advice service or Pension Wise provides free, impartial guidance for over 50s.
Answer questions: Fill out all the questions regarding your existing pensions to create a quote tailored to your needs and requests.
Receive your pension annuity quote: If you know what you want and have your paperwork to hand, you can receive your quote in just 15 minutes, and you will also have the option to download it as a PDF to refer to later.

Visit Legal & General to find out more.