"The best performing pension could produce more than three times more pension income than the worst performing one. The really bad news is that your pension fund is more likely to be amongst the bad than the good" The Observer
When a pension scheme member starts to draw benefits from his or her fund there will be different options in the way in which the annuity (‘annual income’) can be provided.
If the pension scheme member selects a pension which remains at the same level until his death it will lose value in real terms (that is, after the effects of inflation) but if he opts instead for a pension which increases each year the starting level will be much lower. Lots of issues must be taken into account included the state of health of the member.
Which type of annuity is best value?