A compulsory purchase annuity has to be bought, hence the word ‘compulsory’, with the proceeds of each pension plan that you have been saving in.

However, in most instances it is Not compulsory to purchase that annuity from the provider that you have been saving with. Neither is it compulsory to use all of the accumulated fund(s) to purchase an annuity, some of the fund, circa, 25% can be taken as a ‘tax free’ lump sum.

In broking annuities for clients, Accord has experienced a wide divergence in annuity rates between annuity providers, often as much as 20% between the highest and lowest rate quoted.

Accord will discuss with you your annuity requirements,
be they level or increasing in payment, whether or not
a surviving spouse annuity is required and, if so how
much, i.e. 100%, 66.33% or 50%, prior to researching
the market then making a written recommendation
as to which annuity provider is offering the best
annuity rate at that moment in time, based
on your particular needs.