The graph above provides an example of the potential annual income payable, for someone aged 75 in 2007, who bought an Investment Linked Annuity in 1992. This illustrates how a smoothed income can be achieved – even when stock markets were falling around the world.

The example is based on man aged 60 buying a With Profit Annuity in March 1992. Monthly income with 0% Assumed Bonus Rate at the outset and throughout. Source: Prudential.