If you use your pension fund to buy an annuity and you die early, you may lose the money you’ve paid into it.

If you want to ensure that your annuity continues to pay out for a set period, you can choose an annuity with guaranteed payments. This option guarantees to pay out an income for the remainder of the set period, if you should die within that period. These set periods are usually between five and ten years.

Alternatively, you could choose to take out capital protection (also known as value protection). This may pay back part of your initial purchase price when you die.

Both these options will reduce the initial income you receive.