An Ethical Annuity

An Ethical Annuity is in essence a SIPP (Self Invested Pension Plan) Drawdown with investment choice linked to ethical and socially responsible funds. This enables you to put your money where your morals are. Which ethical and socially responsible funds you invest in will depend on:

your ethical and environmental concerns
how much investment risk you are prepared to take
the level of income required

An Ethical Annuity pays an income at a level of your choosing, within of course the permitted income limits. Although there are no guarantees of future income levels, some important safeguards have been agreed with the Inland Revenue to potentially lessen the risk of an annuitant’s fund being depleted or reduced to minimal levels. One of these is the recalculation of the income limits every year. Consequently annual reviews are essential.

The Investor therefore

controls the investments made,
gains flexibility of the amount of income needed,
the remaining fund is not lost on death, but passes (subject to IHT and possibly income tax) to heirs, although a conventional annuity has to be purchased at the age of 75 (this rule us currently under review and may change in 2006).

There are currently over sixty ethical and socially responsible funds to choose from, encompassing fixed interest funds, UK equity funds, international equity funds, and specialist equity funds investing in, for example, Renewable Energy.

An Ethical Annuity it is not suitable for all and it’s vital that prospective clients take professional advice and with the Advisor monitor the investments carefully.

Investment Risk Warning

Please remember that the value of units, and the income from them can fall as well as rise, and you may not get back the amount originally invested, especially in the early years. Past performance is also not necessarily a guide to future performance.

Article By:

_{^{Jeremy Newbegin
The Ethical Partnership Ltd
Tel: 08456-123411
jeremyn@the-ethical-partnership.co.uk
www.the-ethical-partnership.co.uk}}

_{^{To give the best possible advice we require clients to complete an ethical preferences questionnaire (see www.the-ethical-partnership.co.uk) as well as a fact find incorporating an investment risk proforma.}}

_{^{Please note that articles on My-Annuity do not constitute regulated financial advice. These articles are intended to provide general personal financial information. You should always consult an}}_{^{Independent Financial Adviser (IFA)}}_{^{before making ANY financial decision. This article was contributed by a 3rd party and does not necessarily represent the view of my-annuity.co.uk.}}_{^{In this case we would strongly recommend that you contact the author Jeremy Newbegin who is an expert in this field and whose contact details are provided above.}}

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