What is an Annuity?
When you eventually access your pension, and after taking a tax-free lump sum, you will most likely place the balance of your pension in an Approved Retirement Fund (ARF) or Annuity.
An Annuity is a financial product whereby after taking your tax-free lump sum from your pension fund you allow an insurance provider to retain ownership of your residual pension fund and in return they will give you a guaranteed income for the rest of your life.
We can guide you through the advantages and disadvantages of Annuities and Approved Retirement Funds. Typical considerations you need to keep in mind are:
- Flexibility of Income
- Taxation of Income
- Ownership of Funds
- Inheritance Opportunities for Spouse and Family
- Investment Risk
Guardian Wealth can help you choose the right option. We have the skills and the team to provide expert retirement and pension planning advice. We can formulate a financial plan for you that achieves your personal and financial goals, and most importantly we can explain it to you in a clear and easy to understand manner.
We want to take the mystery out of retirement planning and give you a very clear understanding of what you need to do to make sure you achieve financial freedom in retirement.
How can we help you?
Annuity or ARF – Which is best? Over the next two articles I will explore the pros and cons of Annuities vs ARFs (Approved Retirement Funds) in this Article we will examine which might suit you best. When you access your pension and after getting your lump sum you...read more
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