Advantages

  • It pays you an income which cannot go down in value (only conventional/enhanced/impaired annuities)
  • Income is paid until you die – not for a limited period
  • Income will never run out in your lifetime
  • There’s no investment risk for conventional annuities
  • It can provide an income after your death to other family members
  • You can protect your income against inflation.
  • Easy to understand the choices
  • Option to protet capital through Pension Annuity Protection

 

Disadvantages

  • Once an annuity is set up you cannot change it
  • If it is set up on your life only, on your death it will stop
  • You must decided what income type you require at the outset
  • You must decide what additional benefits you are going to include at outset
  • You lose ownership of your funds
  • Loss of benefit and capital on death
  • No further benefit from investment growth
  • Annuity rates fluctuate therefore if you buy when the rate is low your income is fixed at this rate

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