An annuity that guarantees that you will get your money back should you die!

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This video has come about as I had a number of comments directly to me and on the channel about how bad it is that buying an annuity means all your money is lost on death. And I’d completely agree with that.

Your money goes to the insurer and the insurer will win if you die early into taking the annuity. This will be a nice short video explaining why that doesn’t have to be the case that you can buy an annuity and get more back than you paid for it and its guaranteed.

As I've talked about before, we know that with an annuity we are taking a personal pension, after the tax free cash has been paid out, we go to the insurer and give them this pot of money and they guarantee an income for the rest of our lives.

The main issue here is that our money is given to the insurer and will be lost on death should we die. Lets say its £100,000 after the tax free cash has been paid out to us. This would buy in the current market an income of £6,000 per year for a 70 year old with no health conditions and on a level basis. If they died after say 2 years they have lost £88,000.

This doesn’t have to be the case and I’ll explain why.

🗒 Please note:

The information provided is based on the current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice. Also it may not reflect the options available under a specific product which may not be as wide as legislations and regulations allow.

All references to taxation are based on my understanding of current taxation law and practice and may be affected by future changes in legislation and the individual circumstances.

This channel is for information and education purposes only. Any information or guidance given does not act as financial advice. Please consult a financial adviser if you are unsure in anyway.

Keep in mind that the value of your investments can go down as well as up, so you could get back less than you invest.

⭐ My aim is to provide education and guidance to help individuals understand pensions, investments and protection.

#financialplanninguk #retire #annuity