Saving through an annuity: 'The big advantage is that you don't pay tax on your contributions

 

Saving through an annuity: 'The big advantage is that you don't pay tax on your contributions'

An annuity allows you to build up a small capital fund for later in life in a tax-efficient way. But what is an annuity? How do you take one out? Two pension specialists explain. "You build up a collective pension through your employer. So everyone shares in the fund. With an annuity, the fund is entirely yours