Annuity Alternatives
There are some alternative products to consider instead of you having to buy a traditional form of annuity and being tied in to fixed annuity rates.
Annuities
Traditional annuities offer you a guaranteed secure income for the rest of your life. However, your money won’t benefit from ongoing investment growth and annuities typically don’t permit you to leave any benefits to your family when you die.
Retirement options
There are other retirement options available which can give you security and peace of mind by offering you a guaranteed income for life, the chance to benefit from investment growth, protection from stockmarket volatility, the ability to leave benefits to your family, and improved tax efficiency.
Paying additional charges for a guarantee allows you to secure your future retirement income while remaining invested for any future stockmarket growth. Guarantees can help guard against some of the various risks you could face in retirement such as running out of money or losing money due to poor investment performance.
Alternatives to annuities
Guaranteed drawdown
A key attraction of Guaranteed drawdown or any other investment-linked retirement product is the possibility of receiving an increasing income, with a guarantee in respect of the income taken or the fund value.
Income drawdown
Income drawdown is an alternative retirement solution for those with larger pension funds who require flexibility with their income and ongoing investment of their pension fund. This is arguably the most flexible retirement solution.
Phased drawdown
Phased drawdown allows you to take your retirement benefits on a gradual or phased basis.
