information

We use cookies to give you the best possible experience online. By continuing to use our website, you agree to receiving our cookies on your web browser. Visit our cookie policy page to find out more and how to change your cookie settings.

skip to main content

Compare annuities

Call us for a free chat on
0800 032 9301

Lines open: 8.30am to 6pm Monday to Friday

Finding the best annuity for you

Whilst there are many annuity providers in the market, the types of annuities available generally fall into one of three categories; lifetime annuities, fixed term annuities and enhanced annuities.

Let's take a look at each of these, and their features in more detail.

Lifetime annuities

Lifetime annuities give you a defined regular income which is guaranteed for the rest of your life. There are a number of options you can add to a lifetime annuity to protect your income for your family members if you pass away. Find out more about annuities.

Features of a lifetime annuity

  • Pays a guaranteed income for the rest of your life
  • Option to add value protection
  • Option to add guarantee periods
  • Option to add a beneficiary to receive your payments if you die
  • No option to increase your income in the future, and once in place you can't make changes
  • Payments can increase in line with inflation

Fixed term annuities

Sometimes called a short term annuity, these give you a regular income for a defined time, for example five or 10 years. Find out more about fixed term annuities.

Features of fixed term annuities

  • Pays a regular income for a fixed amount of time
  • Option to add value protection
  • Option to add guarantee periods
  • Option to add a beneficiary to receive your payments of you die before the end of your term
  • Any pension funds which remain invested during the term can continue to grow

Enhanced annuities

An enhanced annuity could mean you receive an income up to 30% higher than a lifetime annuity if you're in poorer health. Like a lifetime annuity, enhanced annuities pay a regular, defined income until you pass away. Find out more about enhanced annuities.

Features of enhanced annuities

  • Pays a guaranteed income for the rest of your life
  • Higher income if you're in poor health
  • Option to add value protection
  • Option to add guarantee periods
  • Option to add a beneficiary to receive your payments if you die
  • No option to increase your income in the future, and once in place you can't make changes

Things to consider

What do I need to consider before buying an annuity? Once you buy an annuity, you can't normally change any part of it which is why you need to be sure you’ve made the right decisions before you commit.

You have lots of options

You may be able to opt for a drawdown pension or a unique blend of options instead of an annuity.

A drawdown pension lets you take an income from your pension fund which will continue to be invested until you buy an annuity.

A financial adviser or one of our pension specialists will be able to help you create the right combination of options for your personal retirement needs.

You should shop around

When the time comes to take money from your pension, your provider will send you an annuity offer. However, before you accept it you should shop around, seek advice and get a few alternative quotes.

If you have more than one pension plan you could buy more than one annuity and take them at different times. Or you might be better off combining your funds into a single annuity. It depends on your personal and financial circumstances, the state of your health, and what you want from your retirement income.

It's important to seek specialist advice and find out if an annuity is right for you. They will talk to you about the other retirement options available and help you understand which one is best suited to your needs.

Have a commitment free chat with a Pension Specialist

Call us on 0800 032 9301

TextDirect: First dial 18001

Request a call back

Lines open: 8.30am to 6pm Monday to Friday. We may record and/or monitor calls for training and audit purposes.

Got a question?

Call our UK call centre.

0800 756 8020

Lines open: Mon to Fri 8am - 9pm Sat 8am - 5pm Sun and Bank Holidays 9am - 5pm.

Chat online with an LV= expert

Sorry, our Live Chat service is currently unavailable. Please try again later.

More information to help you prepare to retire