The world of property investment can sometimes be confusing; our Glossary is full of useful terms to help every investor, whether they are a first time landlord or a seasoned portfolio builder.
A fixed sum of money that is paid out to you by a chosen insurance company as an annual income until you die. In general there are different types of annuity that you can buy:
Within these options, there are a number of variables that can affect your annuity and provide a level of personalisation. For example, you can get an impaired life or enhanced annuity that pays more if the owner has certain medical conditions that diminish life expectancy, a postcode annuity based on the average life expectancy of the area in which the owner lives, an investment-based annuity which is correlated with the investment market, or a Purchased Life Annuity (PLA) which is purchased with money not tied to your pension pot. You can even purchase a temporary annuity which provides payment for a fixed term, up to a maximum of 5 years, if you didn’t want to commit to a lifetime annuity.