Rhodri wants the security of a guaranteed income (annuity). He also wants his annuity to have at least a 5-year guarantee period – so it’s guaranteed to pay out for at least 5 years after he starts to take it, even if he dies in the meantime.
He’s not bothered about increases and is happy with a level income.
Rhodri asks us if we could help him get a quote with a guarantee of 10 years instead of 5 years. After shopping around, we get Rhodri a quote of £6,315 a year for the same kind of annuity – level, paid monthly in advance, but for a 10-year guarantee.
That’s £415 a year more than Rhodri could have got with his current provider, and with a guarantee period of twice the length.
Thanks to our help, Rhodri gets £415 more a year – and a longer guarantee period – than if he’d stayed with his current provider.
This is a real-life example, but the name and details have been changed.