Annuities

Most annuities provide you with a lifelong, regular income that is guaranteed to last as long as you live. A quarter (25%) of your pension pot can usually be taken tax-free before you buy the annuity and any other payments will be taxed as earnings.

Annuities at a glance

The value of investments can go down as well as up, so you may get back less than you invest. This information is not a personal recommendation for any particular product, service or course of action.

Annuities guide

 

Find out more about the retirement income you can rely on for life.

 

Finding the right annuity

There are many different types of annuities, so it’s good idea to shop around to find the best deal. You will also have to consider what type of annuity is best for you.

  • Do you want an income that will remain the same or increase each year?
  • Do you want an income just for you or one that will pay to your spouse or dependants if you pass away first?
  • Do you want to benefit from stock-market performance?
  • Do you want to buy an annuity for a shorter fixed term and then review your options?
  • Could you benefit from a higher (enhanced) annuity that takes into account any existing health issues you may have?

Shopping around

It is important that you shop around to find the best deal for you, as you would with any other purchase. Your pension provider may not offer the option you want or other providers may be able to offer you a better deal, so it is worth comparing what each provider can offer. 

Annuity Income Tool

Use our portal to help you choose your annuity options and shop around for the best guaranteed income for life.

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Talk to someone about your retirement options in more detail

We can help

Close to retirement but unsure about the options and pitfalls ahead? We can offer guidance and advice to help you find the best solution for your retirement.

Call us on 0800 368 6882, Monday to Friday, 9am - 5pm.

Pension Wise

The government’s Pension Wise service offers free, impartial guidance to help you understand your options at retirement. You can access the guidance online or over the telephone on 0800 138 3944.

Pension and retirement planning can be complex, so if you are unsure about the suitability of a pension investment, retirement service or any action you need to take, please refer to an authorised financial adviser.

Pension money cannot normally be withdrawn until age 55.