- Guaranteed to pay you an income for the rest of your life
- You can bolt on various options to tailor the annuity to your needs such as a spouse's/partner's annuity that continues to pay them when you die or an increasing option, so your annuity income increases each year
- If you are in ill health or have a medical condition you can qualify for a higher starting annuity
- You can take up to 25% of your savings as a tax free lump sum and use the remainder to buy an annuity
- The more options you choose to build into your annuity the more it will cost you and therefore reduce the income quote you receive. For example if you include a spouse's or dependants annuity.
- Any income you receive from an annuity will not benefit from any investment growth as the money is no longer invested
- The decision to buy an annuity cannot be reversed. The government are consulting on changes in this area but currently the purchase of an annuity cannot be undone
- Annuity income is taxable as are other income options