Annuity – providing a guaranteed income.
Buying an annuity can be the right choice for some people, particularly if you’re looking for a certain and guaranteed income for life. An annuity will give you the option to take 25% of the fund as tax free cash and can be tailored to your personal situation and requirements.
However, the diference in annuity rates can be signifcant, so you’ll need to shop around and get careful, experienced advice as to what’s best for you. Additionally, once purchased an annuity cannot be changed or undone even if your situation changes and, as returns are linked to interest rates at the time of purchase, if interest rates rise you could be disadvantaged.