Life Annuity

Life Annuity Guides

What are the rules and options available to you when you want to use your pension(s) to provide you with an income?

You must be 50 (with some special exceptions for certain categories of work/occupations), and this will increase to 55 from April 10th 2010.

Until 2006, you had to purchase an annuity before you were 75. If you died before taking out an annuity by then, the value of the pension fund is be paid into your estate. There are now alternatives, but these carry extra risk and additional costs, and are not suited to most people.

These are dealt further on. The amount of income you will receive will be dependent upon a number of factors.

• Your age
• The state of your health/medical history
• Your previous occupations
• Where you live/have lived
• The type of annuity that you wish to purchase
• The provider that you purchase your annuity from
• The type of annuity you select will also affect your income
• Do you wish to have a fixed income for the rest of your life?
• How much risk are you prepared, if any, with your annuities?
• What is your attitude to taking risks with you annuity?
• Do you wish to escalate your income annually by a set amount?
• Do you wish your income to be index linked to inflation, usually capped?
• Do you wish a proportion of your pension to be paid to a dependents when you die?
• Your dependents health
• Do you have any other pensions or deferred pensions payable for previous employers?

There are 3 different types of annuity:

• Impaired Annuities (or sometimes called Enhanced Life Annuities)
• Investment Linked Annuity
• With Profits Annuities

To speak to an annuity specialist either call us on 0845 302 2287 or fill out the short enquiry form and we will call you back.