What are the living annuity risks and benefits?

Among the living annuity risks and benefits include that in exchange for the flexibility benefit a living annuity provides, you assume the risk of securing an adequate, sustainable income. The income you choose to draw from your living annuity may be too high, causing your capital to reduce over time. This means that your future income could fail to keep pace with inflation or even that you outlive your savings. Choosing your own investment portfolio brings inherent risks. Your investment value and returns are not guaranteed and may move up or down. The value of your investment account depends on the market value of the underlying investments. If markets fall or returns are poor then your capital could reduce or fail to keep pace with inflation. The account value increases with any additional transfers in and positive investment returns, and decreases with draw-downs, negative investment returns and applicable fees and charges.