Insuring your retirement

Annuities have had a bad press in recent years, says the Telegraph, but they will still have a role in many people’s retirement planning.

This is because, as one pension expert put it, annuities are not so much an investment, more an insurance against running out of money – because they guarantee an income for life, which other investments don’t. A sensible approach may be to use part of a pension pot to buy an annuity to secure a base level of income, and invest the rest to provide both rising income and capital to pass on to your family.

Making the right choices at retirement is vitally important and if you have significant amounts of capital in pension funds, the benefits you gain from making the right choices should vastly outweigh the fees you pay for the advice.