Lootman wrote:GeoffF100 wrote:Index linked annuities are the safest way to provide an income. You do not get much for your money, but it is essential to set your expectations at a low level in the present economic climate.
I don't know much about annnuities, I'll admit, but are they not subject to credit risk? The issuer of an annuity is usually an insurance company whch could fail, as Equitable Life did in the UK and AIG did in the United States.
Normally you would expect another provider to take over the book of a failed provider, but if that did not happen the FSCS guarantee 90% of the annuity. Not sure if that applies to all annuities though or just pension annuities.