Written by the Retirement Line Team
Annuities are arranged so that your annuity income payments continue until you die. After your death, your annuity income payments stop. The problem with this is if you die soon after arranging your annuity, the majority of the money you have saved in your pension is lost. This can leave anyone who relies on your annuity payments (your wife or husband for example) at a loss for money.
There is, however, a simple solution that you may wish to consider.
You can choose for your annuity income to be guaranteed for a fixed period of time. This means your annuity payments will continue to be paid even if you die before the end of this period. It ensures anyone who relies on your annuity income will receive it for a guaranteed period of time.
You can choose for anyone to be the beneficiary of your guaranteed annuity income. You can nominate the person direct with your annuity provider, or in your will.
The guaranteed period can be for any length of time up to thirty years, typically, a five or ten year term is selected. It’s entirely your choice. You should remember that any guaranteed period you arrange, the lower the annuity income you will receive from the start. Ask one of our Annuity Specialists for a breakdown of the annuity figures so you can make an informed decision.