A lifetime annuity is one of the most popular plans that a person can take out at retirement age and this type of income plan will provide them with one way of converting their existing pension pot into a reliable source of income for the rest of their lives. Right around the UK, lifetime annuities are proving to be a popular option as they work in the similar way to a wage - providing a regular income to a person - for the remainder of their life.
At retirement, one of the biggest concerns that a person can have is wondering how they will possibly replace their existing income with what they have saved from their pension pot and this can be easily solved by taking out a lifetime annuity. A lifetime annuity can provide you with a reliable source of income for the remainder of your life, while allowing you to take up to 25% of your pension pot as a tax free lump sum.
Your personal circumstances will very much dictate the amount of annuity income that you are able to receive, but working this out is not always easy. Anything in your life which might alter your potential life expectancy is something that you need to take into consideration, but the things that can primarily alter this is your current health status and any lifestyle habits that you lead.
If you are a generally healthy person with good lifestyle habits then chances are that you will be paid over a longer period of time and therefore your annuity income will be lower. Alternately there are many elements in your life which could start to push this potential life expectancy back down, including your age and whether you smoke or drink.
In addition, a lifetime annuity does not have to be an individual decision, you can take out a joint annuity which covers both you and your partner and helps to ensure that you are both looked after throughout retirement.
At retirement, one of the biggest concerns that a person can have is wondering how they will possibly replace their existing income with what they have saved from their pension pot and this can be easily solved by taking out a lifetime annuity. A lifetime annuity can provide you with a reliable source of income for the remainder of your life, while allowing you to take up to 25% of your pension pot as a tax free lump sum.
Your personal circumstances will very much dictate the amount of annuity income that you are able to receive, but working this out is not always easy. Anything in your life which might alter your potential life expectancy is something that you need to take into consideration, but the things that can primarily alter this is your current health status and any lifestyle habits that you lead.
If you are a generally healthy person with good lifestyle habits then chances are that you will be paid over a longer period of time and therefore your annuity income will be lower. Alternately there are many elements in your life which could start to push this potential life expectancy back down, including your age and whether you smoke or drink.
In addition, a lifetime annuity does not have to be an individual decision, you can take out a joint annuity which covers both you and your partner and helps to ensure that you are both looked after throughout retirement.
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