| RF Personal Retirement Account | Annuity | |
|---|---|---|
| Who owns the account? | You own the Account. By owning your pot and keeping it invested, there is potential for it to grow. As a result, you could have more money than you had planned for in your retirement. | If you buy an annuity, then you no longer own your savings. You effectively use your savings to purchase a stream of future payments over your life. |
| How flexible is it? | You are free to add or withdraw money when you want. You choose where your pension is invested and are responsible for it. | Once your annuity is set up, your income is fixed for life and cannot be changed. |
| Is my money safe? | While your fund remains invested, it is not guaranteed and is subject to the ups and downs of the market, so your income could fall. If you live longer than expected, you could outlive your income. | Your income is secure will be paid to you for at least the rest of your life, no matter how long you live, and is not affected by market performance. |
| What options do I have? | There is huge flexibility in choosing which investment to invest your pension. | Before you buy your annuity, you can shop around to find the best rates. But once you choose your provider, you have to stay for life. |
| What happens when I die? | If you die, your remaining funds will be inherited by your Beneficiaries. | It cannot be inherited by your dependants unless you selected a spouse’s income or a guarantee period before the annuity was set up. |