This option provides you with an income for as long as you live – there is no longevity risk, which means you won’t outlive your retirement savings.

Main benefits of this option

• You'll receive an income for the rest of your life, guaranteed!

• When purchasing, you can choose from various options of how your income should change over time.

• If you select a joint life option, you'll have the option to provide an income for a partner after you die.

• If you select a guaranteed term, an income is guaranteed to be paid for the term – even if you die.

Potential drawbacks of this option

• Although different guarantees will give you different incomes, you cannot choose how much income you'll receive.

• Apart from possibly specifying a guaranteed term for income payments (as referred to above), you are not able to leave your retirement savings as an inheritance.

• Various features selected on your annuity may reduce the initial income payable.

This option allows you to choose the amount of income you'll receive from what you've invested. You are allowed to change your income amount every year. This must be done carefully – choosing a high drawdown rate could mean that you run out of money. The income you choose will also be subject to regulated limits.

You could possibly preserve some of your retirement savings for your dependents. However, you run the risk of running out of money if you live longer than expected or if the market performs worse than expected.

Main benefits of this option

• Every year you can choose how much income to draw, within the regulated limits.

• You can possibly preserve some of your retirement savings for your dependents as an inheritance.

Potential drawbacks of this option

• You could run out of money – this would mean that you cannot draw the income you need nor leave an inheritance.

• If the investment markets perform worse than expected, you may need to draw less income than what you would like.

• You may need to accept a lower starting income to increase the likelihood of you having a sustainable income.

This option combines the features of both worlds, guaranteed and living annuities. It ensures that you receive an income for life and allows you to potentially preserve some of your savings for an inheritance on your death. You can decide how you allocate your retirement savings between the available annuities.

The main benefits and drawbacks of this option would be a combination of those mentioned for guaranteed and living annuities separately, depending on how you allocate your retirement savings.