Whilst new rules mean you no longer have to buy an annuity when you retire, annuities are one way of providing for a steady income in retirement. The type to choose will depend on the level of risk that you are comfortable with.
What are they?
Unlike fixed annuities, which provide a guaranteed level of income from the outset (albeit not index linked), how much a variable annuity will pay out in income depends on the performance of the underlying investments.
These payouts can go up or down, but there should be a minimum guaranteed level of income. The price...