The
Scenes | THE ANNUITY | THE DRAWDOWN
OR SSAS | THE EXECUTIVE
ANNUITY |
|---|
| CAPITAL | Gives the capital to an
insurance company.
Result: when you and
your spouse die there
will be little or nothing
for your family or other
heirs. | The insurance company holds
your capital. It is invested | You buy an annuity but the
fund is kept separate and in
your account. We can decide
with you who manages your
money |
| INCOME | You will get usually, a
guaranteed income until
you both have died. | You get an income based upon
the investment return but you
must have a minimum income
and less than the maximumdetermined by the Government
Actuary. | You must have 1% of the sum
used to purchase the annuity.
You control how much income.
you need above the 1% |
| THE RISK | None | Investment performance | Investment performance |
THE
IN DEATH
RETIREMENT
BENEFITS | Your spouse receives an
income. | Your spouse can receive an
income until you would have been
75. Then an annuity is purchased
and the capital will be lost after
the second death. Or a tax bill of
35% can be paid and the balance
of 65% of the fund taken by the
survivor. On a SSAS deaths 'at
the wrong time' may result in a
refund to the company and a
Corporation Tax charge. |
a. The fund remains invested
to provide the survivors income.
b. If no survivor, then 93.5%
passes to heirs. |
THE
BENEFIT | You get a fixed income
and lose the capital | You may delay having to buy the
annuity until you are 75 - then
you lose the capital | 93.5% of your fund when you
die will be passed on to your
family or heirs. |
