Annuities top five FAQs
Here are the five most popular questions we've been asked about Annuities.
If you have a question that is not answered below you might like to search our interactive FAQs.
What is a Pension Annuity?
A Pension Annuity converts the pension fund you have built up over the course of your working life into a regular income that will be paid to you for the rest of your life.
Because it is paid to you for as long as you live, it is a kind of insurance policy to make sure you don't run out of money if you live longer than expected.
When can I buy an annuity?
You can buy an annuity from the age of 55.
Do I have to buy an annuity through my pension provider?
No. You can choose who you buy your annuity from - it doesn't have to be with the company that you used to build up your pension fund (this is known as the open market option).
The amount of income you get from your annuity will vary between different insurance companies, so it's a good idea to do some comparisons before making your decision.
Can I provide an annuity for someone else?
Yes, but it will only be payable in the event of your death.
You can decide to use your fund so that a pension continues to be paid to your dependant. A dependant is someone who is married to you (including civil partners) or someone who, in the opinion of the scheme administrator is financially dependent, or dependent due to disability on you, at the date of your death.
I'm a smoker, will this affect the annuity rates I get?
Possibly, we may be able to offer you an enhanced lifetime annuity if you're a smoker or suffer from certain medical conditions. Make sure you tell your financial adviser if you do smoke or have a medical condition as it could significantly increase your annuity income.
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