Introduction

Module 11 - Annuities and Pension Benefits

In this module we will learn about annuities and the factors that a member needs to consider when purchasing an annuity.At the end of this topic you will be able to:

• State the different annuity types.
• Describe where the funds come from to purchase an annuity.
• Explain how an annuity can be tailored and used as part of a retirement solution.
• Identify what affects the cost of an annuity.

In this module you will see that a member has quite a few options when purchasing an annuity and they can impact greatly on the amount of income received. It is essential that the member obtains several quotations and has enough information to make an informed decision; the member should also seek independent financial advice.

Remember – once purchased, currently the annuity cannot be changed!