Pros & Cons of Life Annuities
The Pros of Annuities
- Life Income
- Tax Advantages
- Annuities can create a pension for those without pension plans.
A life annuity ensures you do not have to worry about stock market failures.
Annuity payments are for life.
You receive a tax advantage when you use non-registered funds.
Personal Pension Plan
The Cons of Annuities
- Age Disparity
- Multiple Companies
Lower payments for joint annuities.
Longevity could affect the amount of payment.
Need to split capital to obtain 100% income guarantee.
You cannot change the terms of annuity.