446735002-Pension-Fix-by-Martin-Lewis

Annuity Angst: Martin’s Tips
Choosing between conventional
and investment-linked
There is no right or wrong decision
here. Again, the lack of a crystal ball
means you won’t know the outcome,
which is why you need to pick based
on what you do know: how secure
you want to be and could you afford
to live if the investment-type annuity
performed poorly?
It depends on your circumstances and
your priorities. Most people go down the
conventional route.
Do you need certainty?
If you need security and fear
your income falling, then go for the
conventional choice. Someone with
a small pension pot should not be
gambling with this cash, as it’s to last
the duration of retirement.
Those willing to accept risk, however,
and happy to see their income fluctuate,
may want to gamble in the hope of a
higher retirement income, but make
sure this could never push you over the
brink and make life unaffordable.
Have no regrets
Remember, whichever route you
decide, there’s no point looking back
with hindsight and wishing you’d
chosen a different path. If you need
surety, remember you got it by going
down the conventional path, even if in
10 years you realise the other option
would’ve paid out much more.
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