Pension annuities

There is a range of different types of pension annuities, also referred to as compulsory purchase annuities. This is where your personal pension fund or employer's pension scheme must be used to purchase an annuity to provide an income in your retirement.

The income received is seen by the government as earned income and taxable under the PAYE system.

The rate of return you could receive for your personal pension fund varies across providers and is based on life expectancy and your personal circumstances. Therefore it is crucial to get support from one of our specialists to make sure you receive the highest rate for your circumstances.

For guidance on all types of pension annuities, why not speak to one of our specialists on 0845 609 0980.

Summary of some of the different pension annuities available to you:

Conventional Annuity – is invested in gilts and corporate bonds, which has the potential to give a fixed return.
Enhanced or Impaired Annuity – could pay a higher income to those with a qualifying illness or who smoke.
With Profits Annuity – provides the opportunity for a smooth growth in income over the long-term with a minimum income guarantee. Income can go down as well as up from year to year depending on market conditions.
Unit-Linked Annuity – provides the opportunity for growth in the long-term by linking the income to the performance of assets on the stock market. The income can go down as well as up from year to year subject to market conditions.
Flexible Annuity – gives a secure income for life with the potential for growth
Single Life Annuity – gives retirement income throughout your lifetime but provides no income for dependants when you die.
Joint Life Annuity – gives retirement income to your spouse or partner if you die first.

What could I get?

Further information and examples of annuity incomes.

Contact us

Take advantage of our Annuity Service, simply call us:
0845 609 0981
Lines open 9am - 5pm Mon - Fri.

Or use the online contact form to email us.