Fixed Term Annuity

Spivo46

I am currently in pension drawdown with ongoing anxiety about the future of the stock market. With this in mind i am always looking at viable options. I am surprised to see that a 5 year fixed term annuity is so attractive;

£400,000 over a 5 year term returns £1,824 a month, paying out a total of £109,470 in total over the 5 year term. At the end of the 5 year term it will return my original £400,000.

Yes i understand that it takes away flexibility in that 5 year term and inflation will affect the buying power of that £400k in 5 years time.

Any thoughts please?

Marcon

Does the product meet your needs?

Probably worth re-reading the answers when you asked something pretty similar in July:

https://forums.moneysavingexpert.com/discussion/6677639/fixed-term-annuity-vs-drawdown

Spivo46

https://forums.moneysavingexpert.com/discussion/comment/82167095#Comment_82167095

Thank you - I am well aware of the previous posts and comments. The market has moved on and i thought this data was interesting