With people living longer placing more demands on state benefits combined with continued uncertainty in the global economy the need to invest into a pension that will provide a level of income in retirement to maintain a good standard of living has never been so important.
What is a Pension Annuity?
A pension annuity is a type of insurance product that is the result of the investment paid into a pension plan that is now being utilised as an income to fund an individual's retirement. A pension usually enables the policyholder to take up to 25% of the value of the fund as a tax free cash lump sum. The remaining pension pot is what forms the pension annuity in retirement and is usually paid either monthly or yearly.