Temporary Annuities
A temporary annuity will pay you a guaranteed income for a chosen period of time, normally at least five years. At the end of this period you get back a guaranteed lump sum amount that you can use to either buy a lifetime annuity or another temporary annuity.
There is a risk that your income could fall (or rise) at the end of your chosen period, depending on
- the size of the lump sum amount paid
- changes in annuity rates generally
- your increased age
- changes in the law
- if you have developed a health issue.