Dealing with retirement and how you are going to support yourself can be a challenging task, for many people this is a time where they look for an element of security and dependency from their income. Beginning in the UK around five years ago, fixed term annuities are a popular choice for people who are looking to make a fixed investment with a fixed return and can help to provide an element of security in an often volatile market.
Fixed term annuities are often seen as a method of security in retirement and this is something that appeals to many people. Taken out over a five or ten year period they provide the investor with a fixed return and stable income over that period of time, ensuring that they won’t have to worry about money during that period. Fixed term annuities are not market dependant like normal annuities meaning that you will get a guaranteed return for your investment.
Many people are critical of fixed term annuities because commonly they don’t give the same rates as a general investment annuity, but this is because they are a fixed source of income and not market dependant and as with any safe investment they will generally return a little bit less than any investment which comes with a risk. If you choose against a fixed term annuity you could gain more or less money, depending on the market.
In contrast, one of the main benefits of a fixed term annuity is that it gives your beneficiaries as sense of security, in that if you were to pass away before the term of the annuity was up, your money would be passed on to them, after tax. This doesn’t happen with a normal annuity which in many situations can die with you.
If you are looking for a sense of security then many people find fixed term annuities to be a safe option which presents them with a method of providing security to their family and themselves throughout their retirement period.
To find out all about a Fixed Term Annuity, visit The Annuity Specialist. Let their experts help you choose the best annuity for your needs.