446735002-Pension-Fix-by-Martin-Lewis

Fixed-term annuities
A similar product is a fixed-term annuity. Here, you invest in a plan which
provides guaranteed income payments for a set number of years or until you
reach 75. At the end of the period you get a guaranteed maturity sum and are
free to go back into the market to buy another type of annuity.
They are a useful way to postpone your final annuity purchase if you think your
circumstances will change. So you have the flexibility to change your income,
but you have no guarantee that your maturity amount will buy a replacement
annuity at the same level.
They allow you to choose from a range of income and death benefit options
now, as well as deciding what maturity amount you wish to have returned at the
end of the term.
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PROS
Flexibility. Potentially, a higher income in the future if your health deteriorates.
CONS
You risk annuity rates falling by the time you buy one. No certainty of a fixed
income for the rest of your life.
In all the above plans it is important to carefully consider the
tax implications.
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