What is an annuity?

Take care of your retirement with a regular income

An annuity is a regular income which you purchase from an insurance company using your pension fund when you choose to retire. The insurance company is then responsible for paying you a secure income for at least the rest of your life.
When you retire, up to 25% of your total pension fund can normally be taken as a tax free lump sum immediately. The remainder can then be converted into an annuity which will pay you a taxable income, any time from age 55. Please be aware tax rules are subject to change and the benefits will depend on your individual circumstances.

Important points to consider

1. You don’t have to stay with your existing provider when you retire and often they won't offer you the best annuity income.
2. Different annuity providers offer different annuity rates. The difference between the best and worst can be significant and therefore greatly influence your annual income.