An annuity is essentially an insurance product that you can purchase on retirement using your private pension fund. In exchanges for your pension pot, you receive a fixed, regular income – usually for life.
Annuities in 2015 – What’s changed?
With many of the restrictions on income drawdown now lifted, annuities are no longer the only option for most retirees. Despite this, an annuity may still be your best choice in retirement, so it’s important to ensure you understand all of the options available to you.
Your annuity options
- Lifetime annuities – The most common annuity product, offering a fixed, regular income for life.
- Fixed-Term annuities – Pays out for a predetermined length of time, after which you receive a maturity sum.
- Investment-linked annuities – Links your annuity to the performance of certain stocks and shares, helping you to boost your income or keep up with inflation.
Finding the right annuity
Buying an annuity isn’t right for everyone – the rates are variable and they can be quite restrictive. However, if a secure, reliable income in retirement is a high priority for you, they should be a serious consideration. A free consultation with one of our independent financial advisors can help you to understand whether or not an annuity could make sense for you. They can also conduct a comprehensive market analysis to provide you with personally tailored annuity quotes from the UK’s leading providers.