With an Annuity you will receive a regular income for the rest of your life. Annuities may be more suited for people who wish to avoid potential risks, and would prefer a guaranteed income for their retirement. There are three choices you need to make when purchasing an Annuity:
A Single Life Annuity is payable for the rest of your life only. With a Joint Life Annuity, a percentage of your pension is payable to your spouse after you die.
If you choose to include a guaranteed period, your pension will be payable for a minimum of the guaranteed period, even if you die during that time.
Escalating or Level
A Level Annuity means your payments remain the same throughout your life. An Escalating Annuity means your payments increase at a fixed rate each year.