Asset backed annuities and With Profits annuities offer a highly flexible option for the retirees
. Though there are quite a number of people who follow the traditional methods to get some assured monthly income post their retirement, a few venture into riskier options like the With Profit annuities.
With Profit annuities are designed in such a way that they provide great retirement income to the retiree and also provide protection against inflation effects. These are considered to be better options than the level annuities because it is the With Profit annuities that provide gradually increasing income over a span of years. But the risk involved here is that the income might fall unlike its other counterpart.
As the results of the With Profit fund depends to a certain extent on the stock market, the fund tries to balance out the profits by holding back the same so as to support during the underperformance time of the stock market. Volatility in income is nullified and generally the With Profit annuity funds are not always invested only into the stock market but split into diverse assets class.
In case you are diversifying your investment for future retirement purpose, then you must definitely consider this With Profit annuities option too but, it is only an expert help or advice that will be able to guide you through the entire process.
As mentioned earlier With Profit annuities carry with them a certain amount of risk which not all kind of people can sustain through. So, this option is advisable only for these who are not risk adverse and have diversified their investment portfolio and do not depend solely on this for their retirement income. As always, before investing one could get free annuity quotes and also avail the annuity comparison service to get the best income possible for their post retirement period.