Annuity At age 75
Financially speaking, an annuity refers to the exchange of a lump sum of money from your pension in return for a fixed income over a period of time. Many people are interested in transferring their pensions into annuities as a way of generating a regular income.
Some insurance providers offer annuities that will continue to pay you back for as long as are alive. Other insurers will provide a fixed term annuity plan (usually around 5-10 years) that will pay you up until the end of your set time period. In the case that you die, the fixed period will still continue to provide an income, possibly for a family member or surviving dependant.
The government announced in 2011 that buying an annuity at age 75 would no longer be compulsory. If you are looking to convert your personal, stakeholder or employer scheme pension into annuities and you are aged 75, the choice is now completely up to you.
There are a few important factors worth considering before you decide to trade your pension for annuities. These include:
Will you be protected against inflation?
How much risk are you willing to take?
Does anyone currently depend on you?
Do you want full control of your investment?
What is your general state of health like?
See below for our partner service to shop around the UK annuity market: