Guide: Everything you need to know about annuities when creating a retirement income

When your employees retire, they will often have a range of choices available as to how they can take their retirement income. One such method is an annuity.

An annuity could provide them with a way to create a guaranteed income once they retire. As a result, they may offer financial security and peace of mind over the long term.

Yet, research suggests many approaching retirement don’t understand how annuities work. Getting to grips with annuities could be important when deciding how to access their pension.

Read our latest guide to discover the essentials they need to know. The guide covers the following topics:

• • Options they may want to weigh up
  • The valuable benefits of using an annuity to create an income in retirement
  • The potential drawbacks
  • 4 useful questions to answer if they decide to purchase an annuity

  
  

   

  Get in touch

  As an employer, ongoing financial education can be beneficial, if you’d like to learn more about how you can support your employees with their financial wellbeing, we can help.

  Email info@second-sight.com or call us on 0330 332 7143.

   

  This guide is for general information only and does not constitute advice. The information is aimed at retail clients only.

  A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.

  The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation, which are subject to change in the future.

  Accessing pension benefits early may impact on levels of retirement income and your entitlement to certain means tested benefits.

  Accessing pension benefits is not suitable for everyone. You should seek advice to understand your options at retirement.