A Fixed Term Annuity is an investment free way of keeping your retirement income options open. You select the term (generally 5 years and up) and income you need (within government limits) and at the end of the chosen term the fixed term annuity provides a Guaranteed Maturity Amount (GMA) to secure the most appropriate pension annuity to you at that time.
The risk with fixed term annuities is that annuity rates can go up or down during the term but a fixed term annuity allows you to take into account any changes to you and/or your spouse (in particular health changes) and avoids you having to make one final decision at the start of your retirement.
There are a limited but growing number of providers in this market such as MetLife.
