Here we have a short introduction to Annuity Deferment for those who might be considering waiting before they purchase an annuity. You may be thinking of deferring your annuity because you want to wait until you are older to take advantage of higher rates. However this could be a financial miscalculation that could cost you money – rates can go down as well as up, not to mention the performance of funds where the money will be invested.
In fact even if you delay your income for a short period, perhaps a few months, you will have lost money from the months where you would have received payments had you opted to purchased an annuity earlier.
There are a number of things to consider when thinking about pension annuity deferment such as you and your partners health, any possible penalties from your pension provider as well as any other investments you may have. Also consider interest rates and the wider economy in general. Adverse economic conditions generally mean that rates and returns from investments funds are lower. With so much to consider, it is imperative that you seek advice from an Independent financial advisor
