I don't really understand the student notes to this answer. Anyone with a brief explanation on how the third option works?
This is how the third option works. Now Choose an income for life funded by cashing in part of your fund yearly. This means that your fund is untouched for the part that need not be used for payments this year. Five Years Later Have all three options as if you are starting. This question has a part to it that was in the old 105 syllabus (the guarantee element implies a cost of guarantee).
