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Because annuity rates have fallen in recent years, the previous popularity of home income plans and other schemes involving annuities has diminished considerably. Summary Traditionally, this option is designed to give you a fixed income for the rest of your life. Equity is released from your property & is invested into an annuity, which provides your income. Additional lump sums are possible, but certain restrictions may apply. Advantages The property owner is guaranteed an income for lifeA cash sum is possibly available in addition to the incomeThe older you are, the more the annuity will pay in incomeA home income plan annuity is typically higher than purchasing a stand alone annuity Disadvantages The level of the income generated in real terms can be reduced by the effects of inflationAnnuity rates at present are low at present, hence the timing of the purchase is importantIf you died in the early years, you can lose out financially unless protection is includedThe younger you are, the less the annuity will pay in income Due to the complexity of lifetime mortgages & the various options available, it is essential you seek independent financial advice. 'the complete equity release service'
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