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  • My annuity gives me a guaranteed income

  • Annuities

    If you want a guaranteed income for life when you retire, an annuity might be a good option to consider.

  • An annuity is a guaranteed, regular income which you purchase from an insurance company using your pension fund. The insurance company is then responsible for paying you an income for at least the rest of your life.

    There are many different types of annuity, each designed to suit different personal circumstances. A free online annuity planner is available at MoneyHelper which can help you decide which type of annuity is right for you.

    You will need to make some choices about the type of annuity you want to buy. There are lots of different types on the market, and annuity rates vary quite a lot. We recommend you talk this over with a financial adviser.

    It’s an important decision, as once you’ve bought an annuity, you can’t change your mind even if your personal circumstances change.

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    Things to consider when buying an annuity

    The regular income you get from an annuity can be affected by a number of different factors, these include:

    • Age – The older you are when you set up your annuity, the higher the regular income you’ll get. This is because your annuity needs to last for a shorter period.
    • The options you choose – If you add a spouse to your annuity, your money may have to last for longer once you die, meaning you’ll receive a lower regular income. You can also choose to guarantee your payments for a set period, e.g. 10 years. This means that should you die within the initial 10 year period, your annuity will continue to pay out for the remainder of the term. If you choose to protect your annuity against the rise of inflation you will receive a lower regular income initially.
    • Your lifestyle* – If you smoke then your life expectancy is shorter and therefore you’ll receive a higher regular income from your annuity.  This is because your annuity needs to last for a shorter period.
    • Your health* – If you suffer from any pre-existing health conditions that affect your life expectancy then you may get a higher regular income from your annuity. This is because your annuity needs to last for a shorter period.

    *These factors are only considered by providers of so-called lifestyle, or enhanced annuities. The amount you receive could be substantially higher than you’ll get from a provider that doesn’t consider these factors. 

  • Call us on 0345 129 9993 to get an annuity quote or to find out more about the annuities on offer.

  • Other useful information to help you

    Pension Benefits Guide

    Find out about other retirement options with our Pension Benefits Guide.

     

    Download Guide

    Your pension: your choices

    Download the Your Pension: your choices guide from MoneyHelper.

     

    MoneyHelper (opens external link)

    Get help with retirement

    If you'd like to find out how you can find help with retirement planning.

     

    Planning your pension income

  • Please bear in mind

    Choosing a retirement income option is a big decision so we recommend that you get guidance or advice to help you to understand your options.

    Pension Wise is a government service from MoneyHelper available to anyone over the age of 50. The service is free and provides impartial guidance appointments over the telephone to help you understand your options at retirement. It can offer you:

    • guidance on your pension options and how to make the best use of your pension pot
    • information about tax when taking money from your pension pot
    • tips on getting the best deal, including how to compare products, get financial advice and avoid scams

    Find out more about Pension Wise and how to book an appointment by visiting Pension Wise.

    In addition, you should visit MoneyHelper to access their ‘Your pension: your choices’ guide and other useful retirement tools.