Alternatives to Conventional Annuities

For some people, the security offered by conventional annuities is not the most important factor to consider. Some examples of other considerations are:

·        The opportunity for potentially higher income to be achieved through investment returns.

·        The ability to use self-investment to maximise investment choice.

·        The protection of your pension fund for your family.

·        The ability to vary your income to suit your needs.

·        Generating income in different ways to help with tax planning.

·        Perceived poor value from conventional annuities.

If you do not think that a conventional annuity is the best way for you to take pension benefits, then there are alternative options open to you.

However, it is very important that you understand that all the alternative options involve an element of investment risk. They are only suitable if you are prepared to accept some investment risk in retirement.