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An at-retirement annuity is a way for you to make sure you receive a steady stream of income (pension) after you retire. The amount of income depends on various factors, including how much you have saved in your retirement fund and the annuity you purchase.
The two main types of at-retirement annuities
- Guaranteed (Life) Annuity – pays you a guaranteed monthly income for the rest of your life. You may receive a yearly pension increase depending on the type of guaranteed annuity (or increase profile) and the investment market performance.
- Living Annuity – Allows you to choose where your retirement savings are invested and how much you receive as an income (within limits). There are no guarantees, so your money could run out
What should you consider?
The questionnaire below will help you discover which type of annuity (Guaranteed or Living) may be best suited to you. Remember that choosing an annuity is a very personal decision. So, while your responses can help you figure out which annuity might meet most of your needs, you should speak to a financial adviser before making any decisions.*
Alternatively, your needs may lie somewhere between these two options*. In which case the best solution for you may be a combination of these two types of annuities.
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*Important Note: This guide is NOT financial or investment advice. It is intended to help you understand the differences between the main at-retirement annuities so you can make an informed decision about which one is best for you in consultation with your financial adviser.
