The Living Time Annuity

The Living Time Annuity is backed by AIG, and the man behind it is Peter Quinton, the former owner of a large annuity bureau company.  Strictly speaking it is classed as a type of Unsecured Pension, even though it is called an annuity. It is designed for the under 75s, and there are a couple of variants.

In a nutshell the Living Time Annuity can provide an income until age 75, and at age 75 provides a known (lower) figure back to you. This money is then used to buy an annuity or invested in an alternatively secured pension. It is similar to an income drawdown contract in some ways, but has less investment risk, since you know at the outset what your "fund" will be worth at age 75.

What you don't know is what annuity rates will be at age 75 - they could be higher or lower.

The Hartford Income Drawdown Contract

A company called the Hartford, which is a large American company, have introduced what is best described as a lower risk income drawdown contract.

In many ways it works just like a traditional income drawdown contract, you invest your pension with them, take any tax-free cash if required, and the remaining fund provides an income. Then provided you do not take more income than the maximum they allow, then your income is guaranteed.

Additionally the fund value for income purposes and in the event of death is also protected, and any growth is locked in on each policy anniversary (up to 10% growth on the previous locked in value). Each time the protected value increases so does your guaranteed income. 

Don't take any chances with your annuity, you only have one chance to get it right, talk
to an independent pension annuity specialist now