The word "annuity" is correct and usable in written English.
An annuity is a type of investment that provides a series of regular payments over a period of time, such as an insurance contract. You can use the word "annuity" when describing a type of financial investment or contract. Example Sentence: We decided to invest in an annuity to ensure we had a steady stream of income in retirement.
Selling an annuity is a logical extension to the new pension freedoms and carries similar risks.
Thoughts of reform should focus on the young When George Osborne told the 400,000 people who retire every year with an annuity that they could now do whatever they liked with the money, it immediately sparked concerns about a renewed buy-to-let boom.
Neil Lovatt, director at a financial mutual, Scottish Friendly, reckons anyone who thinks they will get a good deal by cashing in an existing annuity is "living in cloud cuckoo land".
Related: Is selling your annuity a good cash deal?
A cut in the annual allowance to £30,000 would start to affect those earning much above £100,000 a year, particularly people in final salary type schemes According to the financial advisers Hargreaves Lansdown, "a lifetime allowance of £1m would cap final salary scheme payouts at £50,000 a year and money purchase payouts at around £32,000 a year (based on an inflation linked annuity)" it said.
In his recent budget the chancellor confirmed plans to make it easier for pensioners who have already bought an annuity to cash it in – exchanging a guaranteed income for life for a cash lump sum they can spend or invest as they wish.
Independent pensions expert and the government's older workers champion I believe it is right to give purchasers who were forced into annuities the chance to change them Until now, most people were forced to lock their pension fund into an annuity, with no chance to change it.
In its report, "The age old problem of old age: fixing the pension", the CIS recommends three policy changes: include the family home in the assets test, create a government-backed reverse mortgage annuity (one that ensures seniors cannot be forced to sell the family home) and include reverse mortgage payments in the assets test.
An annuity will give you certainty, but the income dies when you do, leaving nothing for your heirs.
"That is likely to be a better strategy than going fully into drawdown and hoping to find a fund to replicate what an annuity will provide – you won't".
I expect most people will not sell their annuity, but there are numerous circumstances in which they might consider this.
