A
lifetime annuity converts your pension into an income
for the rest of your life, however long you live.
As you may expect with any long-term investment, there
are a number of factors to consider at the outset, and
the amount of income an annuity will pay depends on,
among other things:
- The amount in your pension fund after taking any
tax-free cash. (You must take any tax-free lump sum
before your 75th birthday.)
- Your health or lifestyle –
some annuities pay you a higher-than-normal income
if your health or lifestyle threatens to reduce your
life span.
- Your age - the older you are
the higher the income you may get.
- Your sex – usually
the starting income from the same size of pension
fund is higher for a man, than it is for a woman of
the same age.
- The type of other benefits
and options you choose.
Choosing a Lifetime Annuity takes careful consideration
and specialist help. There are advantages, such as;
the guaranteed lifetime income, 0, 5 or 10 year payment
guarantees and for the life thereafter of the annuitant,
minimal paperwork and tax-free options for a lump sum.
However, these must be measured against other potential
disadvantages, such as; no option to vary your income
and complete loss of control of your fund, and it may
exclude you from taking part in other investment return
schemes.
Annuities of this type are often best-suited to people
who like minimal risks, and require security in the
knowledge that their decisions have a guarantee. Furthermore,
anyone who may rely heavily on their pension income
is also suited to lifetime annuities. (See
our free Useful PDF Downloads area
to the right).
Get the Full Story
Robert Bruce Associates
can offer you specialist, helpful and clear advice on
these Annuities, to help you make an informed choice.
Our qualified advisors will ensure any decision is made
only once you have all the facts in hand, and only as
a result of establishing your personal wishes and criteria.
Why not call us today?
Get the most out of
your retirement.
Call us today
on: 0845 838 7377
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