William Burrows

Members Login
Post Info TOPIC: Are annuities worth it?


Newbie

Status: Offline
Posts: 1
Date:
Are annuities worth it?
Permalink  
 


I like the idea of an annuity but I keep hearing they are useless and bad value for money - what do you think?



__________________


Billy

Status: Offline
Posts: 14
Date:
Permalink  
 

Well I would say that annuities are very useful and good value wouldn't I!

This is actually a hard question to answer because there are many different parts to it:

1 Annuities are useful because they are the only policy that converts a pension pot into regular and guaranteed income for the rest of your life
2 Annuities are good value because they repay your original capital with interest providing you life past your normal life expectancy - if you life longer than expected you are much better off but if you die before expected you may not have been re-paid all the money you invested

Please see my web pages that explain the benefits of annuities in more detail, especially mortality cross subsidy - www.williamburrows.co.uk/retirement/annuity/

Finally, don't forget most people who are married take out a joint life annuity so if you die before your spouse or partner they will carry on getting an income so it is not true to say that an annuity always dies with you

__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.