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Living Annuity vs Life Annuity Comparison

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Choosing between a Living Annuity and a Life (Guaranteed) Annuity is a significant decision for your retirement. Each option offers unique benefits, but understanding how they align with your goals is key.

💡 Did you know you can transfer Living Annuities at no cost?

Let us help you compare these annuities with a Free Living Annuity Comparison Report, tailored to guide your decision-making.

Living Annuity Overview

A Living Annuity gives you control over your retirement savings, allowing you to adjust your income withdrawals (within limits) and select your investment strategy. It offers flexibility and growth potential, but also comes with market-related risks.

Benefits of Living Annuities

  • Income Flexibility: Adjust withdrawals (2.5%–17.5%) to suit your needs.
  • Investment Control: Choose where and how your funds are invested.
  • Growth Potential: Choose where and how your funds are invested.
  • Legacy Planning: Pass any remaining funds to your beneficiaries.
  • Tax Advantages: Tax-free growth within the annuity and no estate duty.

Living Annuity Calculator

Life (Guaranteed) Annuity Overview

A Life Annuity provides fixed, predictable income for life, managed entirely by the provider. It’s a secure option with no market risks but less flexibility. In most cases, remaining funds are not passed on unless a guaranteed period is selected.

Benefits of Life Annuities

  • Lifetime Income: Guaranteed, consistent payments for life.
  • No Investment Risk: Income is unaffected by market volatility.
  • Simplicity: No need to manage investments or adjust withdrawals.
  • Longevity Protection: Eliminates the risk of outliving your savings.

How Our Free Comparison Report Can Help You

Understanding which annuity is best for your retirement requires clear, actionable insights. Our Free Living Annuity Comparison Report provides:

  • Income Evaluation: Check if your current withdrawals are sustainable.
  • Fee Optimization: Identify potential savings to maximize your capital.
  • Performance Benchmarking: Compare your returns with top funds.
  • Goal Alignment: Ensure your strategy evolves with your needs.
  • Alternative Options: Explore other annuities if adjustments are needed.

Living Annuity vs Life Annuity

Which Option Is Right for You?

  • Living Annuity

    • Best for retirees who value flexibility, want control over investments, and wish to leave an inheritance for beneficiaries.
  • Life Annuity

    • Ideal for those who prioritize stable, guaranteed income for life and prefer a hands-off approach to managing their retirement.

A Common Strategy: Combine Both Options

Some retirees stay in a Living Annuity during the earlier years of retirement (ages 60–70) to benefit from flexibility and growth.

Later, they transition to a Life Annuity (around ages 70–75) for higher guaranteed income, leveraging shorter life expectancy. This approach balances growth potential early on with stability in later years.

Let’s Help You Plan Your Retirement

Whether you’re comparing annuities, optimizing your current Living Annuity, or exploring other retirement options, Investonline is here to help. With expertise in Retirement, Financial, and Estate Planning
we’ll guide you to make the best decision for your future.

Take control today with our Free Living Annuity Comparison Report or speak to our expert advisors to tailor a retirement strategy just for you.

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