Investment Trust Dividends

To Annuity or not to Annuity

If u buy a joint life annuity with 100k, u could currently receive around 7k p.a., less if you want the pension to rise by 3%. You have to surrender your 100k to the annuity provider.

If you used your cash to buy a gilt u would receive an income £4,700 a year, best if held within a tax wrapper, you could take out your 25% tax free amount if held within a SIPP to supplement your income and retain control of the remaining 75%.

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