Retirement annuities are generally considered to be an annuity contract purchased with a pension fund at retirement. This can be either a Guaranteed Annuity or a Variable Annuity. This guarantees you an income for life in exchange for your pension fund.

However many individual pension savings policies issued prior to 1st July 1988 were known as Retirement Annuity Contracts. The tax treatment and minimum retirement ages of these used to differ from post-1988 personal pensions, but subsequent changes in the tax rules have enabled the two different types of contract brought into line, although not all providers have adopted these changes.

One significant difference is that the lowest age at which benefits could be taken from a retirement annuity contract was 60, whereas from a personal pension it is currently 55. If you have a retirement annuity contract and wish to take benefits before age 60 this can normally be achieved even if your current provider does not allow it; please contact one of our advisers for details.

It is important that independent advice is obtained prior to arranging your Pension Annuity, to ensure that you are aware of all the options.

Call  0845 123 5590  or  01325 487192