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When you use the amortization or annuity method, you must factor in an annual interest rate.
When you take your tax-free lump sum you usually have to buy an annuity with the rest of your fund.
If they want to save, they can do so - and make the decision nearer retirement whether to blow the money or buy an annuity .
In many respects, the variable annuity sounds like a mutual fund, but it has key differences.
an annuity scheme
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