Alternatives to Annuities
There are many different ways for you to ensure that your clients receive the income they need in retirement. This can be generated from a range of different sources including:
- Rental income from investment properties
- Yields from income producing investments
- Dividends from shareholdings
- Drawing down on capital in savings accounts
- Interest from deposit accounts
- Cashing in bonds.
Common alternatives
The most common way for your client to receive a retirement income from their pension fund without committing to a lifetime annuity is to use an Unsecured Pension which can provide an income without committing to a lifetime annuity. Clients may also want to consider a Variable Annuity or, depending on their circumstances, be prepared to delay committing to a lifetime annuity.
People whose total value of all pension arrangements is under £17,500* may be able to take the whole fund as a cash lump sum, known as 'trivial commutation'.
If your client is over 75, then their choice is more restricted. Find out more.
Quick Links
USP - Guide to Pros and Cons
Just Retirement's Annuity products
* This is based on 1% of the Standard Lifetime Allowance - this figure is currently £1.75m for tax year 2009/10