Pension Annuities

Pension annuities are the traditional approach to drawing an income from your pension, it is the exchange of your accumulated pension fund for a lifetime income. This is a one off decision as once the annuity is bought you cannot have your pension fund back.

Therefore, it is vital that you consider all of your options before committing to this approach.

There are various types of pension annuities and a variety of options that can be added to your income. However, it should be noted that the more options you have, the more expensive the annuity is, resulting in a lower starting income.

These are some of the options and pension annuities available:

Level annuity
Increasing (escalating) annuity
Investment linked annuity
Guaranteed for a given period
Capital protected
Spouses/dependants pension
Ill health annuity
Impaired life annuity
Immediate needs annuity
Purchased life annuity

(Please note that different pension annuities are taxed in different ways)

Different circumstances would dictate which type of annuity and what options should be considered to ensure that you maximise your income and benefits. When considering pension annuities you only have one chance to get it right. It is therefore important to seek professional independent advice.

For more information regarding our Pension Annuities please contact us on 01633 415 340 or contact us here
Please note that initial retirement planning consultations are free of charge and at no obligation.