An annuity is a contract with an insurance company which guarantees to provide you with an income in return for the payment of a lump sum. These are normally for life, although temporary annuities are also available.

Annuities are usually used for pension funds, although they can also be bought with non-pension savings, and this type of contract is known as a Purchased Life Annuity.

A conventional annuity guarantees to pay you an income for life, no matter how long you live. Because it cannot normally be changed once set up, it is very important to make the right choices when purchasing your annuity.

Current rules state that you must purchase an annuity or Alternatively Secured Pension with your pension fund (net of any tax free cash entitlement) by the time you reach age 75.

There are many Annuity Options available, and which is most suitable depends on your individual circumstances. You are strongly recommended to take independent advice before making your choice.

If you are in the process of deciding which type of annuity is best for you, or if you would like to consider other options such as Phased Retirement or Income Drawdown, please complete our enquiry form or telephone on the number shown above.

Call  0845 123 5590  or  01325 487192