Saturday Star

DEFINITION­S

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Guaranteed annuity: A pension you buy from a life assurance company, which guarantees you a fixed income (which may be inflation-linked) for the rest of your life. Apart from an optional capital guarantee for, say, the first 10 years, there is no capital for your heirs when you die. Investment-linked living annuity: A pension you buy on an investment platform. You take responsibi­lity for the performanc­e of your investment, which may, through the platform, be in unit trusts and exchange traded funds.

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