RETIREMENT OPTIONS AT A GLANCE

At a Glance – the main features of retirement options

 

 

Conventional Annuity

Investment-linked Annuity

Pension Income Drawdown

‘Third Way’

 

Tax free cash?

 

Must be taken at outset

 

Must be taken at outset

 

Must be taken at outset

 

 

Must be taken at outset

 

Is income secure? (no investment risk)

 

Yes

 

No

 

No

 

 

Yes for the fixed term of the annuity

 

Benefit flexibility?

 

Once set up cannot be changed

 

Annuity type is fixed but income can vary

 

Income can be varied subject to maximum limits.  Annuity can be bought at any time.

 

 

Some.  Benefits are chosen at outset of fixed term and cannot be changed within that term.  Benefits can be changed if a further Fixed Term annuity is purchased

 

 

Investment choice?

 

No investment decisions needed

 

Choose from providers range of  funds

 

Can invest in a wide range of investments

 

 

No investment decisions needed

 

Ongoing reviews needed?

 

No

 

Yes

 

Yes

 

No

 

Flexible death benefits?

 

No

 

No

 

Yes

 

 

No.  Benefits paid as specified at the start of the fixed term annuity period