An annuity is a product where you pay a lump sum into it (typically your private pension fund), and in exchange for that, it provides you with a regular monthly income.
When you pay into a private pension and eventually retire, you are able to take up to 25% from the pot of money saved as a tax free lump sum, typically the rest of the pot is invested into an annuity. Each person that takes out an annuity gets their own annuity rate, this is determined by factors such as how much money you've saved in your pension so far, the area you live in, the provider you choose and even your health.
Annuity providers use these factors to determine how long you're likely to live, and then grant an annuity rate that they feel is fair and realistic. If you're unsure which type of annuity you need (there are several), we've put together a guide to help explain the different types.
There are several different factors to take into consideration when you're deciding which annuity to pick.
When thinking about retiring it's important to shop around to get the best level of retirement income available. It's possible to increase your income in retirement by up to 40% depending on your medical situation.
Our annuities specialists will:
Once you've chosen, we manage the entire process on your behalf, ensuring you receive your retirement income hassle free. Compare annuities to weigh up your options.
Confused.com Annuities Service is provided and administered by Premier Retirement Services. A trading name of JLT Benefit Solutions Limited. Authorised and regulated by the Financial Conduct Authority. A member of the Jardine Lloyd Thompson Group. Registered Office: The St Botolph Building, 138 Houndsditch, London EC3A 7AW. Registered in England No. 02240496. VAT No. 244 2321 96.
Annuities market 'like a minefield'
14 Feb, 2014
Pension providers should do more to spell out how annuities work to help consumers through the "mine...
Pension saving back on the agenda
28 Jan, 2014
Saving for retirement is now third on people's lists of financial priorities, according to a report.
Retirees expect 2014 income boost
10 Jan, 2014
People retiring this year are banking on the resurgent economy to provide them with greater income t...
Money 'key concern for pensioners'
10 Oct, 2013
The main worry for retirees is not having enough money to live on rather than not having someone to ...
Six ways to boost your pension income
Confusion over how to turn pension savings into retirement income is being blamed for the current an...
12% spend less than an hour planning retirement income
More than one in 10 (12%) people spend no more than 60 minutes working out how they are going to tur...
Would switchable annuities work?
Are new government pension plans helpful or hare-brained? We examine whether changes in the annuity ...
Call us on 0800 422 0060
Or use the quote button below
Get a life quote
© Copyright 2008 - 2014 Confused.com. All rights reserved.
3rd Floor, Greyfriars House, Greyfriars Road,
Confused.com is a trading name of Inspop.com Ltd and is authorised and regulated by the Financial Conduct Authority