Financial strength is key to investment-linked annuities

annuity report

The market for with-profits has shrunk but the concept still has its plus points when it comes to generating retirement income, as long as one selects a provider whose financial credentials are beyond reproach

Increased longevity goes hand in hand with increased financial commitments in retirement, particularly in later years when some form of residential care may be required. With returns on traditional annuities falling to historically low levels, investors who can tolerate stock market risk may be willing to consider annuities that offer the potential to boost their future income. Having said that, any investor with a substantial fund should also consider drawdown. For the wealthy investor the investment-linked and flexible annuity is often an appropriate choice at age 75, rather than at ...