THE TEMPORARY ANNUITY

Rather than taking out a guaranteed for life annuity now while annuity rates are low, you can choose to take a guaranteed income for a fixed period of time, e.g. 5 years. You then have a guaranteed amount returned to you so you can either repeat the process or buy a lifetime annuity at that point. For some unwilling to take an investment risk, this can be a useful way to guarantee a level of return on your pension fund without investment risk.