Annuity Age Limits
Before 2006, it was compulsory to purchase an annuity before reaching the age of 75. This was increased to 77 in 2010, and the annuity age limit was eventually scrapped in April 2011. As a consequence of these new regulations, it is now possible for people to avoid purchasing annuity plans altogether. The alternative to annuity is income drawdown, which involves you leaving your pension funds invested, with the ability to draw funds out from it directly.
However, even though purchasing annuity is not a necessary requirement when you reach a certain age limit, you still may wish to consider it as an option for your pension. An annuity involves you trading your pension to an insurance provider in exchange for a guaranteed regular income. It could be a good idea to compare the benefits of annuity to those of other options such as income drawdown.
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