Meet Rosemary

Rosemary is 64 and has been a teacher for most of her career. As such, she has a guaranteed pension that increases each year. She also receives a state pension that increases each year too.

Over her career she has also saved into a personal pension and is uncertain what to do with this. 

Her essential expenses are almost covered by her Teacher’s pension and her state pension, but not quite (so she needs to secure a further small amount of regular income). 

Ideally, she would like to keep her money invested, but she’s worried that if markets fell significantly she may not have enough income to cover all of her essential expenses.

Her adviser suggests the Flexible Income Annuity. This is because she can keep her money invested and take an income, but no matter what happens to investment markets, she will always receive a minimum income which is guaranteed not to fall. The minimum income, together with her other sources of income, gives her enough to cover her essential expenses.

For Rosemary it seems like the best of both worlds. She can invest her money for growth, but whatever happens she should have enough income overall to meet her essential expenses.