Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Annuity definition

Annuity is a financial product that turns contributions into a pension fund into regular income once a person retires. In that way it is a type of insurance product, swapping pension savings into guaranteed regular income for the rest of a person’s life.

Annuity definition

An annuity used to be the only option for UK retirees with defined contribution pension schemes, but in 2015 then Chancellor of the Exchequer George Osborne opened up the pension market to more choices. Retirees can now choose to take lump sums, take the whole pot, or take flexible income drawdowns. Still, annuities remain a popular option because of the guarantee of stable income for life.

There are different types of annuity available, including a single-life annuity covering one person and a joint-life annuity that will go on being paid to a spouse or partner until they die. There are also annuities known as enhanced annuities and value-protected annuities. Annuity payments are liable for income tax.

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The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA, a SIPP or an IG Smart Portfolio can fall as well as rise, which could mean getting back less than you originally put in. Spread bets and CFDs are leveraged products and can result in losses that exceed deposits. Spread betting and CFD trading are not permitted within the IG SIPP. Please ensure you fully understand the risks and take care to manage your exposure.

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