Pension Annuity

• An income for life
  No matter how long your retirement, the income from your Pension Annuity will provide an income for life. It's worry-free.

• 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.

• Chose 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?
  You must be aged 55 or over and have at least £5,000 to buy an annuity from your pension pot or drawdown plan, after you’ve taken your tax-free cash.

• I want an 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.

• 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.

• 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.