Making Money How to get a guaranteed income for life - annuities explained
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May 19, 2025 Mark Ormston, a retirement expert from Retirement Line, unpacks the world of annuities and their resurgence amid rising interest rates. He explains how these financial products can offer guaranteed retirement income and the expected returns for savvy planners. Mark delves into the complexities of different annuity types, emphasizing the importance of comparing providers. The conversation also touches on the impact of health, lifestyle choices, and recent pension freedom legislation on retirement strategies, making it essential listening for anyone planning for their future.
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Timing Your Annuity Purchase
- Consider buying an annuity later in life to secure higher income as your life expectancy shortens.
- Typical annuity purchase ages are between 75 and 80 to cover care or living costs.
Customize Your Annuity Features
- Choose joint life annuities to provide income to your spouse after death; percentages can vary per needs.
- Add guarantee periods to protect capital and provide payments to beneficiaries if you die early.
Benefits of Fixed Term Annuities
- Fixed term annuities provide income for a set number of years, returning unused capital at the term's end.
- This product offers more flexibility than lifetime annuities and can bridge income gaps before state pension.