Annuity

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Let us explain what annuities are...

What is an annuity?

An annuity provides a guaranteed income for the rest of your life using your pension savings.
If you value the reassurance of knowing you'll receive a guaranteed income every year for the rest of your life without taking any investment risk, an annuity may be the right product for you.
Fixed term annuities are also available and provide an income using all or some of your pension pot for a defined time.

Important Information about annuities

You can use your pension savings to secure an income by buying an annuity

It gives you a guaranteed income for life or a fixed term.
You can protect your income by taking out death benefit, which continues to pay an income to your partner or spouse after you die, or pays out a lump sum.
You can also protect your income against inflation.

If you die shortly after the plan starts you may not receive full value.
There is no flexibility to vary income and you can’t take money out (other than the income payable).
There are potentially better returns available from other products.
If the Government changes the way annuities are taxed, the income paid to you may fall.

Your Annuity options

Does an annuity sound like something you'd be interested in?

Here are some considerations worth thinking about...

You've got the option to arrange for part of or all of your annuity income to continue to be paid after you die to your spouse or partner (or other beneficiary).
There are different types of annuities and protection options and it’s important to get the right one to make the most of your money. For example, if you’re ill, smoke or physically unfit, your annuity rate could increase.
Your income can increase each year to protect against inflation. You can choose a fixed percentage (say 3%) or an index i.e. Retail Price Index (RPI).
You can't normally change the basis of your annuity, cash it in or transfer it.

Calculators

Use our tools to dig deeper into how you can use your pension savings

Annuity Calculator

Using today's rates our calculator can give you a snapshot of the income your savings could buy you in retirement. You can also choose to add your health details to personalise your quote even more!

Calculate your income today

Fixed Term Annuity Calculator

Our fixed term annuity calculator gives up to date results based on current rates. We shop around the whole of the market to get you the best quote for your specified income and/or guaranteed maturity value.

Calculate your annuity today