Annuity Calculator

annuity calculator

The Retirement Supermarket annuity calculator will help you find the best annuity on the market. Making the right decision about your annuity is crucial. We can guide you through the various choices ensuring you have a long and prosperous retirement, not having to worry about money.

In order to use the annuity calculator, please complete the form opposite and one of our annuity advisors will call you back. We will then compare the entire market, searching through dozens of annuity providers to find you the best deal.

Unlike other quotation engines, such as when you compare car insurance, the rates that are given are only a guide for potential annuitants. For an accurate annuity quote, you must speak to an annuity specialist like ourselves if you want to find the best deals on the market. This is because each annuity deal is assessed on an individual basis. For example, to be offered the more lucrative enhanced annuities, you will have to provide detailed information about your present and past health which cannot be submitted using a short annuity calculator. Moreover not every provider maybe quoted in the calculator that you use. These important points are closely aligned to those of the FSA annuity tables which are also only designed to act as a guide on rates for annuities.

Tips on using an annuity calculator

Age

Your annuity income depends on three main things, how old you are, how healthy or unhealthy you are and your gender. Using an annuity calculator will help you see how these variables will effect your quote. The general rule of thumb is that the older you are, the higher the annuity offer you are likely to receive. This is because the annuity provider (insurance company) calculate that they will have to pay out for a shorter period of years compared to someone who is younger.

Health

As well as your age, another variable which will effect the quote you receive from an annuity calculator is your state of health. If you are unhealthy, as in, you have a medical condition or lifestyle choice which will impact adversely on your life expectancy, then the annuity provider will offer you a better rate as they calculate you will survive for fewer years than a healthy person. Typically people who smoke regularly and/or drink heavily tend to be offered what are known as enhanced rates, because they are likely to be suffering from medical conditions which reduce their life expectancy.

Gender

Women live longer than men on average, and this is reflected in the lower rates offered to women by annuity providers. However, this is subject to a ruling by the ECJ which could rule that this is discriminatory. If this does happen then male rates could be pulled into line with women’s rates, meaning many retirees will be worse off and gender will not be used as a factor when calculating an annuity quote.

Partners pensions

Should you want your spouse or partner to have enjoy income after you pass away, your best option is to choose a joint life annuity. This will lower your starting income but will mean that when you do die, your partner or spouse will have an income to live off. The proportion of your income you want designate to your partner to enjoy after you pass away can range from all of it down to 75%, 66% or 50%.