UK sees growing demand for help bridging gap between end of work and start of pension
Source: The Guardian ·
Fixed-term annuities give income for a set period – such as five or 10 years – and an agreed lump sum at the endFinancial firms are reporting growing demand for a product that helps bridge the gap between stopping work and getting your pension.Sales of retirement annuities have risen sharply during the last couple of years, and now advisers are seeing a fresh surge of interest in what they say…
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Financial firms are reporting growing demand for a product that helps bridge the gap between stopping work and getting your pension. Sales of retirement annuities have risen sharply during the last couple of years, and now advisers are seeing a fresh surge of interest in what they say is one of the market’s “lesser-known” options. An annuity is a product that turns an individual’s pension pot into a regular, guaranteed income. The vast majority of people opt for one that provides an income for the rest of their life, called a lifetime annuity. But more individuals are now buying a version that gives them an income for a set period – such as five or 10 years – and an agreed lump sum at the end. They can then decide what to do with that cash based on their circumstances at the time. This type of product is called a fixed-term annuity, and the retirement specialist Standard Life says it can be a way to secure a guaranteed income for a set period while giving you the flexibility to…