Annuity essentials explained

Article Abstract:

United Kingdom retirement annuities offer a fixed income in exchange for a lump sum, and they tend to be used to provide an income for retirement. Private pension holders have to buy annuities, though a lump sum can be taken out on retirement, tax free, to a limit of 25% of the pension fund. This lump sum can then be invested in tax-efficient vehicles. Annuity rates tend to be linked to interest rates and yields for government securities when the annuities are purchased.

Personal finance

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How to protect your income from inflation in old age

Article Abstract:

Index-linked annuities are available for British investors seeking to protect their income; they can offer good value for money since markets see inflation as likely to be low for a while. Investors who believe they have a long life expectancy may be more interested in these products. Investors can also save from their level annuities and use income from the savings in the event that inflation rises and the value of the annuity drops.

Marketing, Retirement planning

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