When planning for the income needed in retirement, there are many strategies that you can consider - such as superannuation pensions, investment income and Age Pension entitlements. Another option available, depending on your circumstances, is an annuity. We explore a number of considerations when it comes to utilising an annuity in your overall plan.
As with any investment there are pros and cons, such as risk versus return, tax considerations, liquidity and longevity risk as well as your own individual considerations. By having a discussion with your financial adviser you can understand the implications of any decision(s) that you do end up settling on as well as make sure that it aligns with your retirement goals and objectives.