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:
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.
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.
There are many different types of Annuities, including:
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.
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.