Annuity

A pension annuity provides an income after retirement. It is purchased at prevailing rates using your pension savings accumulated over a lifetime of working.

A traditional annuity gives you a guaranteed income for life after you retire. Using a lump sum from your pension or savings to buy an annuity means you don't need to worry about budgeting for an unknown period of time.

You do not have to purchase your annuity with your existing pension plan provider.

There are many considerations when choosing the appropriate annuity:

1. Using your open market option to see which provider will offer you the best return.
2. Guaranteed periods of payment.
3. Indexation of the annuity though its lifetime.
4. Ongoing payments to your spouse or partner in the event of your earlier death.
5. How much of the available commencement lump sum (tax free cash) up to 25% of your fund value should you take.
6. Consideration to alternatives such as an unsecured flexible drawdown pension  (income drawdown) where your fund remains invested and you have access to your whole pension pot.

If you are approaching retirement or just wanting to review all your current arrangements, we will be happy to help. It is so important to have advice from a whole of market adviser to achieve the most. That's exactly what we do for you.
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