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A flexible annuity is a pension investment that allows for a large degree of flexibility and will turn your pension savings into an income that can support you for the duration of your retirement. It has many of the advantages of a traditional annuity but comes with optional drawdown or the chance to invest in the stock market. Flexible annuities offer an income for life with maximum control over your annual payouts, death benefits and varying investment options.
Many investors prefer a flexible annuity as it has the potential to grow and a minimum income amount is guaranteed for the rest of a person’s life. The flexibility of the investment allows you to choose your starting-level income and also to adjust it any time. However, anyone who opts for this type of pension scheme needs to be aware that the income that you draw can fluctuate both upwards and downwards, depending on the market. A flexible annuity is also known as a variable annuity, or a guaranteed-income-drawdown investment and it is always vitally important that an investor is familiar with the advantages and drawbacks when opting for this type of annuity.
Flexible annuities are available from various providers and it is up to the individual if they would prefer to manage their annuity themselves or make use of a professional service. Managing your annuity and understanding market fluctuations and trends requires some financial knowledge. If you are unfamiliar with these things it may be beneficial to make use of a service that can assist you with managing your money. A flexible annuity gives you control over your income, your investments, insurance and the inheritance you leave behind, giving you more options than other annuities or pension plans.
A flexible annuity offers several benefits and advantages over traditional pension investments. Although there is some market-related risk involved, you are guaranteed a minimum income amount that will remain in place for the rest of your life, even if the value of your investment drops below the set amount. If your investments perform well, a flexible annuity allows you to increase your income and draw more funds if required. The annuity also allows you to choose the level of risk you take when investing and can include death benefits and value protection if desired.
A flexible annuity offers financial freedom and an investment-backed pension plan that will turn your retirement savings into an income that can support you for the duration of your life. With its growth potential and a minimum income guarantee, you get both stability and a greater degree of financial freedom.