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see also 'Alternatively Secured Pensions (ASPs)"


An income all your life  -  but nothing left thereafter !    You are taking a bet with the insurance company or whoever is issuing the annuity that you will live longer than they estimate you will.    You  get a guaranteed income, but any capital remaining when you die goes to the annuity provider.


There are various sophistications, which affect the level of the annual payment:

  -  annuities which increase by a small percentage annually to offset inflation

  -  annuities which continue to make payments to your spouse after your death

  -  5 or 10 year income guarantees, which ensure the income continues for the guarantee period even if you die before then.

  -  value protection anuities which guarantee a lifetime income and pay a lump sum to your dependents if you die before 75.   But the lump sum is taxable at 35%.

 - 'temporary' annuities, which last for 5 or 10 years, after which you can start again. 

It is essential that you shop around before buying an annuity, since there will be quite a wide range of   offers.     The FSA website has tables which compare  the offers of different providers.   See .  

Or try Retirement Supermarket, a free service which compares the offers of dozens of annuity providers.