Who should consider a with profit annuity?

Our typical advice is that only those with another secure source of income should consider investment-linked annuities. Although the With Profits annuity is a type of investment-linked annuity that is lower risk, there is still risk, and your income can go down as well as up, though some providers provide layers of protection or guarantees.

You need to bear in mind that the With Profits concept requires that an insurance company “smooths” returns from the underlying fund, to provide a steadier income stream than would be the case with a unit-linked annuity, which could vary sharply day to day. The method of smoothing is not always clear, and some clients may not like this obliqueness.

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