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These days a lot of people ask me whether opening a pension is the best idea; well it's not such a simple question.

This is because it is affected by your own circumstances and whether a pension could benefit you financially.

However, keep reading for some of the key reasons why a pension could be beneficial for your personal needs.

An annuity is available with a wide selection of options, making them ideal for a range of different personal circumstances. For example, you might want to take out a single-life or joint-life annuity. A single-life annuity gives you an income for your life and ceases on your death; whereas a joint-life annuity will carry on paying your spouse after you have passed on. You can even select how much money is paid out; as you might want half or perhaps even more of the original income to be paid to your other half. There is even inflation proof annuity.

One of the main positives of a retirement annuity is that it allows you to receive the security of a fixed income, which you will receive in place of your usual pension. This will give you a sense of security through knowing exactly how much cash you will have to spend on each month; you will then be in a much better situation to budget. As a result, having an annuity is like having a fixed wage; meaning that you will have the stability and consistency that you are used to.

If you should decide to take out an annuity then even if you die before you reach the appropriate age your loved ones can still benefit thanks to annuity protection. If you go with this option, a spouse or partner could be entitled to a lump sum upon your death. Although, this would be subject to a tax charge; it does mean that your money will not be lost and that your family and loved ones will receive some form of financial support. This feature means that an annuity can help your family to pay for your funeral ceremony and can make the entire experience a lot less stressful.

It is straight-forward to when you authorise a policy in your name as your business pension supplier will usually let you decide on taking up an annuity offer when you near retirement. Put simply, if you have an interest in an annuity fund then just wait until you are contacted. However, you should know that presently you do not need an annuity until the age of 75 years old but this age limit could well change now. Consequently, it could well be worth thinking about retirement planning or you should speak to an expert, like those which are available at .

A policy could well save you money as different suppliers can offer you some great deals at good rates. If an annuity appeals to you then you understand it is a good idea to look around and see what offers and benefits are available to you. First, you should discuss with your pension advisor, look at the options you may have analyse the market.

These key factors highlight some of the benefits of putting money into a pension but it really depends on your current circumstances as to whether it could be beneficial.