By Roenica Tyson, 3 July 2020
Firstly, there’s investment risk. The low-return environment we’ve seen over the last few years, coupled with the market crash following the COVID-19 pandemic, more than likely mean you’ve seen a considerable drop in the capital value in your living annuity. Drawing a higher income could potentially lead to you depleting your capital and drawing a lower income may mean that you’re not able to meet your monthly needs. As a result, the second risk all living annuitants face is the very real possibility of outliving their capital.
Investors may be considering if they should take advantage of the current COVID-19 Living Annuity relief to increase the income from their living annuity. While this can bring short-term relief, an increased income drawdown will affect the long-term sustainability of your living annuity income.
Alternatively consider redeploying your living annuity capital to balance your investment and longevity risks by securing the certainty and flexibility of the
FlexiGuarantee Life Annuity.
It’s one solution with many advantages:
Read more about the FlexiGuarantee Life Annuity.