What different types of annuity are there?
Financial Advice for Retirement Planning: Guaranteed annuity; where either a level or increasing income is fixed at the outset. Investment-linked annuity; where the income can go up or down (normally within limits) dependent upon the underlying investment. Enhanced or impaired life annuity; if either the annuitant or his/her dependant is in poor health or smokes, etc, rates can be higher. This can be on a joint life or single life basis. Joint life pays a fixed percentage of the annuity to the dependant which is fixed at the outset. The annuity can be paid for a guaranteed period of up to 10 years, regardless of the death of the annuitant. What are the risks involved in purchasing an annuity? Financial Advice for Retirement Planning: That the annuitant dies earlier than the insurance company expects. Poor investment performance with investment linked annuities can lead to falling income. Significant increases in interest rates in the future could mean that you would be better off to ha
Financial Advice for Retirement Planning: Guaranteed annuity; where either a level or increasing income is fixed at the outset. Investment-linked annuity; where the income can go up or down (normally within limits) dependent upon the underlying investment. Enhanced or impaired life annuity; if either the annuitant or his/her dependant is in poor health or smokes, etc, rates can be higher. This can be on a joint life or single life basis. Joint life pays a fixed percentage of the annuity to the dependant which is fixed at the outset. The annuity can be paid for a guaranteed period of up to 10 years, regardless of the death of the annuitant. What are the risks involved in purchasing an annuity? Financial Advice for Retirement Planning: That the annuitant dies earlier than the insurance company expects. Poor investment performance with investment linked annuities can lead to falling income. Significant increases in interest rates in the future could mean that you would be better off to ha
