Along with superannuation pensions, investment income and Age Pension entitlements, there is another option available when planning for retirement. Another strategy available, depending on your circumstances, is an annuity. We explore a number of considerations when it comes to utilising annuity in your overall plan for income needed in retirement.
Of course, there are pros and cons with annuity investment, as there are with any. These include the risk vs return, looking at tax considerations, liquidity and longevity risk and 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.