What are the disadvantages of annuities?
Find clear, straightforward answers to common questions about pensions, retirement planning, investments, fees and charges, and the services we provide.
The main disadvantages include reduced flexibility, limited access to your pension capital after purchase and less opportunity for investment growth. Depending on the options selected, there may also be less value to pass on to beneficiaries.
Also In this section:
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Can I combine an annuity with drawdown?
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How are annuity rates calculated?
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When’s the best time to buy an annuity?
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Are annuities protected if the provider fails?
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Can I have more than one annuity?
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Can I use a defined benefit pension to buy an annuity?
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Are annuities worth buying now?
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Is an annuity better than drawdown?
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What are the disadvantages of annuities?
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Can I leave money to family with an annuity?
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Can I buy an annuity later in retirement?
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At what age should you not buy an annuity?
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Can I switch from Flexible Income Drawdown to an annuity?
