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FUNDS UNDER MANAGEMENT

Annuities

An Annuity is a financial product you can buy when you retire and it is a way of converting your pension savings into an income for life.

The main points of an Annuity are:

You can take a tax-free lump sum from your plan, normally 25%, and purchase the annuity with the remainder
Income guaranteed for life
When you die, payments stop, unless you have chosen a joint life annuity or a guaranteed payment period
They are simple to understand and give security and peace of mind

The amount of income you are entitled to will depend on the Pension Annuity rate at the time of purchase. The Pension Annuity and its terms are fixed at the outset, whereas a Drawdown plan gives you greater flexibility and allows you to vary the income payments as your circumstances change.

What is the Open Market Option?

The Open Market Option means that when you reach retirement, you do not have to go ahead with the quote you are given by your pension provider. Instead you can shop around and compare different annuity rates to get the best deal to suit your circumstances.

Different types of Annuities

There are many different types of Annuities, including:

Short Term Annuities
Conventional Annuities
Enhanced annuities and 'impaired life' annuities
With Profit & Investment Linked Annuities

Advantages & Disadvantages of a conventional Annuity

Advantages

Disadvantages

Guaranteed income for life
No investment risk
The choices are simple
Provides Security
Can provide spousal benefit
Option to guarantee capital via Pension Annuity Protection

You must decide what income type you require at the outset
You must decide what additional benefits you are going to include at outset
You lose ownership of your funds
Loss of benefit and capital on death
No further benefit from investment growth
Annuity rates fluctuate so if you buy when the rate is low your income is fixed at this rate. Once an income type is chosen this cannot be changed

So if you would like to find out more or review your own position
please contact us by email or call us on

0800 03 04 008

Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of reliefs from taxation, are subject to change.

Please note that we are only providing information within these web pages to help you decide what to do, we are not recommending that a transfer is the right thing for you. It is important that you understand the differences between your old and new plans and there will be other factors that affect your decision to transfer. It is important that you make an informed decision so if you are considering a transfer, we strongly recommend that you seek independent financial advice before taking action.

A pension is a long term investment, the fund value may fluctuate and can go down. You eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of reliefs from taxation, are subject to change.

A pension is a long term investment, the fund value may fluctuate and can go down. You eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.