In a little over a years’ time, Helen will have a
She lives comfortably with her partner, but wants to keep her independence, she's worried about what inflation will do to her pension income over the longer term as her family has a history of living to a ripe old age.
When she retires, she’ll take her 25% tax-free lump sum of AMOUNT and is considering putting the rest into an index linked annuity. A level annuity would give her a flat monthly payment of £RESULT, whereas an index linked annuity would start lower at £RESULT, but go up with inflation. So if
year on year
she could be getting around £000 a month at that time.
This type of annuity can deliver good value for those who live longer after retirement than the norm.
- Her pension pot
- Her tax-free lump sum
- Helen’s initial monthly annuity income
Helen is also entitled to the new State Pension of
£155.65 per week
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