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• Find out what happens when you retire

A temporary annuity can be bought for a fixed period, usually with a minimum of five years and a maximum of the period until age 75 is reached. The annuity income is set for the period and at the end of the period, a pre-determined sum is available.

This can be used to buy another temporary annuity, or a lifetime annuity, or for income drawdown.
Proponents of temporary annuities see them as a way of avoiding making a one-off decision too soon in retirement.

Individuals may go through different phases in retirement, from active early years to more sedentary later years. Over time, income needs may vary, while property down-sizing and inheritances may affect financial circumstances.