VIDEO: What is an annuity?
An annuity – providing a guaranteed income for life – was the main way for pensioners to achieve income in retirement. But as pension freedoms removed the requirement to buy an annuity and falling interest rates hit annuity income, sales have tumbled. Do they still have a role for retirees?
In this five minute video, Maike Currie of Fidelity International talks to YourMoney.com’s Paloma Kubiak, to explain annuities in more detail, how insurers work out your income, and what happens if you’re in poor health.