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Pros and Cons of an Annuity



Lower risk than any other retirement option
Guaranteed income for the rest of your life
Option to provide a pension for your spouse or dependants
Option to protect your income from the effects of inflation
If you die early, your income could be paid back to your estate
You can’t cash it in, swap it or alter it after the annuity begins
Fixed income
If you die early you may not get all the money back (there are options to prevent this)
The options you choose for your annuity affect the level of income you receive


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