Is a Joint Life Annuity Better Than an Investment-Linked Living Annuity?

The question: I am 71 and have decided to retire. I am transferring my money from a retirement annuity to an investment-linked living annuity.

- James Robinson

My financial advisor charges me 0.5% per annum, which adds up to a lot of money for him to contact me once a year to ask if I'm coming out with my money or not.

My wife has opted for a joint life annuity. Is this a cheaper and safer option than an investment-linked living annuity?

The answer: It depends on what is more important to you. For example, you can decide whether it's more important for you to have a secure income for life, if you want the highest possible income for life or to have a flexible income and to leave a legacy for your beneficiaries.

All products have fees, including the joint life annuity, so cost should not be the primary factor when choosing a retirement income.

The cost of a product is not the same as its value to you. Independent studies have shown that financial advisors add more value than the advice cost, far beyond just reviewing annual income.