Fixed Term Annuities

A fixed term annuity enables the policy holder to provide themselves with a secure regular income over a specified number of years often 5 or 10. This will also carry a “maturity amount” at the end of the specified period. At this point you may use the specified maturity amount to invest in any other form of retirement income products, such as another fixed-term annuity or a lifetime annuity alternatively you can withdraw money from your pension via a flexible drawdown. 

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When purchasing a fixed-term annuity there are a number of variables that will need to be considered before purchasing one.

• Firstly the term will need to be set e.g. 5 or 10 years etc. 
• Secondly annuity options must be deliberated such as single or joint life policy? Fixed or increasing income? In much the same way as when purchasing a life time annuity.

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With the fixed-term annuity providing a guaranteed income you can choose and fix the level of income you receive and subsequently the maturity amount to come at the end of the term. The higher the income chosen the lower the maturity amount.

All of these factors require careful consideration and Capital & Income Solutions will be able to recommend whether it will be a suitable product for you and compare what’s on the market and find you the most competitive product.