Here are some aspects to choosing a variable annuity you might like to weigh up.
| Advantages |
Disadvantages |
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You are not locked into one product for life, so you can review your circumstances at any time
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Guaranteed income is likely to be lower than the income you could get from a conventional annuity (even more so if you could qualify for an enhanced annuity) |
| Income is guaranteed for life |
There may be charges associated with providing the guarantees which could impact on the performance of your investment |
| The fact that your pension fund is invested means that it can increase during your retirement, increasing your guaranteed income |
There is no guarantee of how funds will actually perform, so if they do not perform well you risk receiving less income over your retirement compared to if you had bought a conventional annuity when you first retired |
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Death benefits are flexible and could also be guaranteed
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We would aways ask you to discuss your situation with a financial adviser.
If you don't have an adviser you could use Unbiased.co.uk to help you find one.
Useful links Annuities in the news
Might you qualify for an enhanced annuity?