Example

The assumed bonus rate (ABR) you choose at the beginning is also important because the higher the assumed bonus rate the greater the income you start with, and the greater the risk you are taking that future income might fall. The assumed bonus rate can typically be from 0% to 5%.

For example, for a male aged 65, and a fund of £100,000, Prudential would offer the following starting levels of income:

£4,926 at 0% (no widows benefit)
£6,899 at 3% (no widows benefit)
£8,330 at 5% (no widows benefit)

With Prudential you can also switch to a conventional annuity at a later date if you wish. This can only be with Prudential, and this is the case with all who offer this option. Therefore, it is important that Prudential (and any others offering this option) are typically competitive on conventional annuities.

Thank you for your latest information. Very helpful and puts the present situation into perspective...
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