Other Products

There are some alternative products available to you other than having to buy a traditional form of annuity and being tied in to fixed annuity rates. However, these can be complex, and appropriate advice should be taken.

Some alternative products to annuities to for consider

These are a few of the alternatives

Click on the title for more information.

Early tax free cash

Access your tax-free cash early without buying an annuity.

Variable annuity

A key attraction of this type of annuity or other investment-linked retirement product is the possibility of receiving annuity payments comparable to a conventional annuity at the outset, with the added potential for income increases to combat the effects of ongoing inflation (you could opt for an inflation proof annuity) and the opportunity of ‘real’ growth in the value of the underlying fund. Others to consider are a with profits annuity and a unit linked annuity.

Flexible annuity

This pays an income for life with greater flexibility over four key retirement income areas: investment, income, inheritability, and insurance.

Income drawdown

An alternative retirement solution for those with larger pension funds.

Phased drawdown

Taking retirement on a gradual or phased basis.

SIPPs

For those wanting to take a more active role in investing for their retirement.

What happens in practice

An annuity purchase is still the preferred choice

Annuities still preferred by the majority of retiring individuals, and most retirees do at some stage make an annuity purchase, and there are a selection to choose from. Take a look at the annuity guide page for details of the various annuity types available.