When people think about retirement they usually think about all the activities that they love to do or all the time, they will have to go on trips and holidays. But with retirement comes a more important issue – how will you pay for all these activities and holidays?
For most of us, by the time we retire we will have built up a pension fund, but then what? Surely we can’t live the rest our lives just on this port of money?
An annuity is a way to take that pension fund and create an ongoing income out of it and essentially make the most out of that pot of money.
Depending on your individual circumstances you could boost your pension income quite significantly. There, of course, many annuity options that will apply to you and it is important to understand which ones are suitable for you; after all this is a decision that will affect the rest of your life.use link at http://www.ft.com/cms/s/0/690c8a42-b918-11e5-b151-8e15c9a029fb.html#axzz3xZDhKyiN
Most people who take out a pension annuity would go for a simple lifetime annuity. This is normally a sensible option because a lifetime annuity guarantees you an ongoing fixed income so you know what you will be getting in advance.
The two main factors …