What to do with released pension or annuity money?
You have build a capital in a tax friendly manner, for example through a retirement savings account or annuity. This amount, also called annuity capital, is released on an earlier agreed date to you (e.g. at the ‘AOW’ date ) . To maintain your tax benefits the amount should be paid to you in installments. This is possible with a direct annuity that pays an amount periodically within the agreed period.
When your capital is released, it is not always required to purchase a benefit. Sometimes it is possible to do so at a later date and to increase your return on money first. If you choose to purchase a benefit, there are several possibilities, such as banking or through insurance. And do you wish a temporary or lifetime benefit, or a combination of both? Besides this you have to deal with tax rules and the amount of the benefit can differ greatly with various insurers. Therefore it is wise to be informed very well about the options.
The advice on the use of your capital is based on your personal financial situation. That way you get the best possible return on your benefit. As an independent consultant, Aon will investigate the whole market to find the most suitable solution for you.
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