When nearing retirement and having to consider your options of where and how to invest your retirement savings , one must take a significant amount of information into account. If you are trying to conquer this journey on your own, it can become quite a tough task.
There are a few different ways to cut this cake, so let me elaborate on specific terminologies before delving into the comparison between the two. It is also important to note that you can only utilise voluntary money to buy a life annuity, but not to invest in a living annuity. A living annuity must be funded by the compulsory portion of your retirement fund or retirement annuity.For the purposes of this article, and subsequent articles, we will concentrate only on “investment-linked living annuities” vs “compulsory guaranteed annuities” , and certain hybrid products which are a combination of the two.
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