Why may you seek an alternative?

The very thing which makes annuities secure, prevents them from being flexible and adjustable. Once purchased, there is no way that any of the alternative options may be considered. Whereas, if another of the alternatives are chosen, and circumstances change, an annuity may be purchased. The annuity option remains available throughout the remainder of your life and may indeed be taken up by any of your dependants.

The other reasons an annuity may not be the most suitable choice for you now are:

• Income must be taken - with annuity purchase, you may draw the maximum tax free cash, but the remainder of the fund is used to purchase an annuity, which provides a taxable income. Other options allow you to take some or all of the cash, and no income

• Current Annuity rates - These are perceived as being poor, i.e. the income available with the same fund now is significantly lower than it was five or even two years ago. This reflects many factors, not least of which is the current market conditions.

• Income Tax Planning - Once the annuity has been purchased, as with the income from the current scheme, it cannot be stopped or altered. This may not suit your circumstances or needs.

• Inheritance Tax Planning - When the annuity is purchased, either by you or the scheme, the fund is spent. The largest possible lump sum available to your beneficiaries is the payment of up to five years income instalments, if you die in the first five years.

• Investment control - There is none with a conventional annuity - the insurance company invests the money as they see fit to meet the guaranteed payments.