Why Buy An Annuity?
After decades of putting your hard earned cash into a pension pot, now is the time to turn that pot into your income for the duration of your retirement. An annuity allows you the peace of mind that you will have a monthly income and will never run out of your pension fund
Since the pension reforms in March of 2015 annuities have once again become one of the most popular investment options.
Building up a big enough pension pot to sustain a hopefully long & happy retirement is difficult, so isn’t it worth taking the time to ensure you maximise your moneys potential?
There are pros and cons of purchasing an annuity, you should look at other retirement options before you decide as this is one of the biggest decisions you’ll make in your life.
In a perfect world you’d have a rough idea on how long you can expect to live for so that you never find yourself emptying your pension pot. However this isn’t recommended as it’s based entirely on chance and is not a financially viable option for most people.
This is why an annuity could be ideal for you! Purchasing an annuity effectively allows you to use the entirety of your pension for its designed function, the best part though? You’ll never run out of cash.
Points to consider before you buy
- Purchasing an annuity is virtually hassle free, once you’ve bought it there is no ongoing management to consider.
- You can tailor an annuity to your personal interests e.g making sure your dependents are financially secure after you pass away.
- You’re guaranteed a stable source of cash for the rest of your life.
- Inflation doesn’t have to affect you, some annuities have measures to ensure the income reflects the current inflation rate.
- Annuities in terms of investments are low risk and aren’t affected by changes to the market.