Fixed Term Annuities

 

Fixed term annuity plans pay out a fixed income for a specific period of time which is planned at the outset and can generally range from a minimum of five years and up to a maximum of 75 years old. There is a guaranteed maturity amount and can also come with a range of possible death benefits.

 

Fixed term annuities allow the individual some flexibility because it allows them to change their income throughout their retirement period. Compare this with the majority of standard annuity plans, once the plan has been taken out nothing can be changed after, so all major decisions including the level of income and any death benefits need to be decided at the outset. With fixed term annuities it enables the retiree to keep their options open.

 

Research shows that the average life expectancy has increased; in 1956, the average man could expect to live another 12 years if he retired at 65, and for women an extra 15 years. By 2006, the respective life expectancy for a 65-year-old man was 20 years and 23 years for the average 65-year-old woman.

 

Changing attitudes to expenditure is also a major consideration in retirement. Generally the retirees are now in much better health than their predecessors which allows them to be more active; taking more holidays, taking up more activities and making changes to their properties.

 

With life expectancy and changing attitudes to expenditure in mind a fixed term annuity allows them to reassess their circumstances at a later stage in retirement when their fixed term annuity matures and perhaps take out either a different type of annuity plan that matches their current circumstances better or take out another fixed term annuity.

 

The major benefit of fixed term annuities is that it offers the security of standard life time annuity but with the flexibility to change your income at a later stage.

 

Contact us today to speak to one of our experienced annuities advisers to find the best fixed term annuity rates. Take advantage of our free online annuities calculator, complete an online enquiry form or call us on 0800 936 399.