Annuities
Annuities are used to provide an income. The pension lump sum is exchanged for a pension income guaranteed for life. Once the annuity has been bought, the income is fixed and the contract cannot be reversed - the pension lump sum becomes the permanent property of the annuity provider.
The level of income that you will receive from an annuity depends upon several main factors:
- The level of Investment
- Age of 'annuitant'
- Health
- Sex
- The prevailing annuity rates at the point of annuity purchase
In general, the older an annuitant the higher the income which can be secured. Furthermore males usually receive a higher income than females due generally to having a shorter life expectancy.
