Whilst there are many annuity providers in the market, the types of annuities available generally fall into one of three categories:
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 annuity income for your family members if you pass away, for example value protection.
Sometimes called a short term annuity, these give you a regular income for a defined time, for example five or 10 years.
An enhanced annuity could mean you receive a increased annuity rate compared to a lifetime annuity if you're in poorer health. Like a lifetime annuity, enhanced annuities pay a regular, defined income until you pass away.
Each annuity type has its own advantages and disadvantages, and we recommend you get professional financial advice about your pensions so you can get the most for your money in retirement. 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.