Pension Annuity

An income for life

A fixed or increasing income

You can choose a fixed income that always stays the same or set your income to increase every year to help you keep up with inflation. It can increase by a set percentage or in line with the Retail Price Index (RPI). It’s worth remembering that the higher the increase you choose, the lower your starting income will be.

Payment options

You can choose monthly or yearly payments and you can select to be paid at the start (in advance) or at the end (in arrears) of the month or year you’ve selected.

Options to support your dependants

You can continue to have your payments paid to a loved one after you die by choosing either 50%, 67% or 100% of your income.

Guaranteed minimum payment period

You can guarantee to have your income paid for a certain amount of time – up to 30 years – once your annuity starts. If you die during this time, we’ll continue to pay your income to anyone you choose until the end of this period.

Choose to protect all or part of the amount used to buy your annuity.

When you die we'll pay a lump sum for the amount protected, minus any income payments already made. You can protect 25%, 50%, 75% or 100% of the original amount used to buy your annuity.

Full details on these features are in the Key Features document

The options you choose will affect the amount of income you receive.

Am I eligible for an annuity?

You must be aged 55 or over and have at least £5,000 to buy an annuity from your pension savings after you’ve taken your tax-free cash. If your total pension savings are below £5,000; please contact us to understand more about your options.

I want an annuity income for life

If you value certainty that your income will last you throughout later life, this product may be for you.

I need to support my dependant(s)

If you want to pass some income to a loved one when you die, this product may be for you.

I want security from risks

Your income is guaranteed and is not affected by the performance of the investment markets or economy. It is guaranteed for life.

I have some health risks

If you have any medical conditions or lifestyle risks then you could get a higher income, with an ‘enhanced annuity’. When getting a quote online there is a section to capture these details. This also applies to your partner and could mean you receive a higher income.

Once agreed, it can't be changed

You'll need to be certain of the choices you make - there's no going back once the cancellation period ends and your Pension Annuity has started.

No cash-in value

The Pension Annuity can’t be cashed in or surrendered.

Your income is taxable

Income above your personal allowance is taxable. It may also affect any means-tested benefits you might receive. The amount of tax you pay on income from the plan will depend on your circumstances, and may change based on your income tax rate.

You may get back less than you paid

Depending on how long you live and the options you choose, you may receive less in income payments than the amount of the pension pot you used to buy the Pension Annuity.

Enhanced annuities: Health details matter

When providing your information it’s important to share accurate personal health information with us, as this may help provide you with a higher income. We may ask for a report from your doctor to confirm information you've given us. Your income may be changed if we find the report doesn't match your application.