Six options to improve your pension pot income

15 May 2012

1. Ill-health annuity

Look for an ill-health annuity, which, even for minor health issues, will bump up your income significantly.

Find the best annuity rate for your circumstances

2. Temporary annuity

Purchase a temporary annuity for a short fixed period, with a view to buying an ill-health annuity should your health begin to fail.

3. Income drawdown

Income drawdown is now highly restrictive, but you might choose this solution in the hope that gilt yields improve.

4. Investment-backed annuity

An investment-backed annuity might work if you believe the investment climate will pick up, but it is best if you have other assets to fall back on should the underlying investments disappoint.

5. Scheme pensions

Convert to a scheme pension. This is almost always an attractive solution and is not impacted by gilt yield levels and restrictive legislation.

6. Work longer

Work longer to boost your pension fund and eventual payouts.

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