The option to defer purchase of an annuity (choosing income drawdown instead) has the benefit of investment flexibility, offset by the lower annuity which one will be able to purchase later after having drawn down the capital (mortality drag). Interest rates and inflation can affect the decision to purchase, as they are reflected in the annuity rates, and also affect secure investment potential by varying bond yields. Inflation deteriorates the buying power of an annuity and can therefore be a concern, however inflation-indexed plans have been marketed.
Nenhum comentário:
Postar um comentário