What could I get?

You should start thinking about your annuity options about four months before your retirement, and at Bank of Scotland Annuity Service we can guide you through the whole annuity process and provide full advice including a personalised illustration.

Speak to one of our experts, or alternatively e-mail us and we'll call you back

Factors that are considered by annuity providers which determine how much income you could get:

  • The amount of money in your pension fund;
  •  The amount of tax free cash you decide to take from your pension fund;
  • Age;
  • Health, e.g. if you have a long term illness or if you smoke;
  • Average life expectancy;
  •  Whether you require a single or joint plan.

A 5 year guarantee is available at a relatively low cost due to increased longevity and is therefore used in these examples to protect your income against your premature death.

Single life annuity

Provides income during your retirement for the length of your lifetime, upon death the annuity ceases and is not passed to any dependants.

The examples provided below are based on £100,000 lump sum with a 5-year guarantee:

Person details Monthly income before tax
Smoker Non smoker
Male, age 65 £735 £613
Female, age 65 £686 £574

Source - Financial Services Authority website, 28 Feb 2008. Figures quoted as gross.

 

Joint life annuity

Provides income during your retirement for the length of your lifetime, upon death the annuity is passed to a spouse or partner at the percentage opted for. In the example below this is 50% of the annuity.

The examples provided below are based on £100,000 lump sum with a 5-year guarantee.  These examples assume that the spouse is the same age as the client.

Person details Monthly income before tax during lifetime of annuitant Monthly income before tax (50% annuity value) for spouse or partner after death of annuitant
Smoker Non smoker Smoker Non smoker
Male, age 65 £619 £564 £310 £282
Female, age 65 £607 £552 £304 £276

Source - Financial Services Authority website, 28 Feb 2008.  Figures quoted as gross.

Contact us

Take advantage of the benefits of our Annuity Service, simply call us, or e-mail us today.

0845 609 0981  

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