Limited annuity has drawbacks

Limited period annuities have been touted by the Government as one way of improving the attraction of the pension annuities market and helping alleviate the plight of those retiring, hard hit by the massive fall in annuity rates in recent years. In the early stages of retirement, pensioners often need a bit of time to get a clearer idea of what the future holds. The use of a limited period annuity for, say, the first five or even 10 years would enable them to assess their income requirements more accurately when life in retirement has settled down. The main rationale behind limited peri...