A When you purchase an annuity you are exchanging your pension fund for a guaranteed income for life for you and possibly your spouse or dependent if you took out a
joint life annuity. In April 2017, when the second-hand annuity market is launched, you could possibly sell your annuity in exchange for a lump sum.
Or perhaps you want to make some provision for your partner, in which case do you opt for a
Joint Life annuity that will continue to pay out after you've gone?
As a comparison, if you were to buy the maximum PS25 per week at age 65 you would be spending PS22,500 to get an extra PS1,300 per annum, which is double the amount from a comparable
joint life annuity with index linking and a 50 per cent spouses pension.
* You can acquire either a single life annuity (which provides life-long income for you alone) or a
joint life annuity (which provides annual income for as long as either you or your spouse/sibling are alive).
Many are attracted to them because they offer a higher rate than a
joint life annuity.
When you die, payments stop, unless you have chosen a
joint life annuity or a guaranteed payment period ?
"Delaying the primary earner's benefit is equivalent to purchasing a second-to-die or
joint life annuity," the authors write.