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.
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