Guide: Everything you need to know about annuities when creating a retirement income

When you retire, you will often have a range of choices available to you about how you take your income. One such method is an annuity.

An annuity could provide you with a way to create a guaranteed income once you retire. As a result, they may offer financial security and peace of mind over the long term.

Yet, research suggests many approaching retirement don’t understand how annuities work. Getting to grips with annuities could be important when deciding how to access your pension.

Read our latest guide to discover the essentials you need to know. The guide covers the following topics:

• Options you may want to weigh up
• The valuable benefits of using an annuity to create an income in retirement
• The potential drawbacks
• 4 useful questions to answer if you decide to purchase an annuity

Contact us to talk about how to create an income in retirement

Annuities are just one option to consider when you’re retiring. We can help you understand whether an annuity could be right for you, as well explain the alternatives you may also want to consider.

Please contact us to arrange a meeting to talk about your retirement goals and how you may use your assets to create an income.

This guide is for general information only and does not constitute advice. The information is aimed at retail clients only.

A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.

The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation, which are subject to change in the future.

Accessing pension benefits early may impact on levels of retirement income and your entitlement to certain means tested benefits.

Accessing pension benefits is not suitable for everyone. You should seek advice to understand your options at retirement.