Pensions and Retirement Training Course on Understanding Annuities

Module 1: Introduction to Annuities
Definition and purpose of annuities in retirement planning
Types of annuities: immediate, deferred, fixed, variable, indexed, and hybrid
Benefits and limitations of annuities
Historical context and global perspectives
Case study: comparing annuities to other retirement income sources

Module 2: Pricing and Payout Structures
Actuarial principles in annuity pricing
Understanding mortality tables, interest rates, and discounting
Payout options: life-only, joint-and-survivor, period certain, and escalating payments
Impact of annuity fees, commissions, and administrative costs
Exercise: calculating expected payouts for different annuity structures

Module 3: Integrating Annuities with Retirement Income
Combining annuities with pensions, DC plan balances, and personal savings
Optimizing retirement income streams using annuities
Partial annuitization and phased retirement strategies
Longevity risk pooling and smoothing income volatility
Workshop: designing a retirement income plan incorporating annuities

Module 4: Risk Management and Inflation Protection
Longevity, inflation, and market risk considerations in annuity products
Selecting products to hedge against specific risks
Indexed and variable annuities as inflation protection tools
Scenario analysis: managing adverse events with annuity solutions
Exercise: evaluating risk-adjusted annuity options

Module 5: Tax, Regulatory, and Member Guidance
Tax treatment of annuity income and contributions
Regulatory frameworks and consumer protection considerations
Disclosure, transparency, and fiduciary responsibilities
Communicating annuity options effectively to retirees and scheme members
Capstone project: developing an integrated annuity strategy for a hypothetical retirement client