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Annuities factsheet

Our free factsheet gives you more information about the benefits of annuities and using our new online annuity service.


How much will an annuity give me?

How much income could I take from my pension?

Depending on the type of annuity you choose, your retirement income could be influenced by a number of factors. These include the size of your pension fund and the performance of its underlying investments, your age and state of health, your lifestyle choices and even your location. This is why annuity calculators like ours can be so helpful when you are seeking an income from your pension.

Enhanced annuities and other features

Your choice of annuity could significantly affect how much income you get in retirement. For example, an enhanced annuity takes your life expectancy into account when calculating your income rate and could pay you more if you have a health condition or take prescribed medicine. Your income could also be affected by any extra features you choose, like securing your income for a minimum guaranteed period or opting for a lump sum to be paid to your beneficiaries after you die.

Find out more

The importance of shopping around

Unlike flexi-access drawdown which gives you total control over how much money you take, with an annuity you get a set income rate for the rest of your life. Plus, once you have bought an annuity you cannot usually change your mind (but this is expected to change from the April 2017 tax year). This means it is important to shop around between different providers, either by using an annuity calculator or applying directly, in order to find the most income for your individual circumstances.

More information on buying an annuity

Do I pay tax on income from an annuity?

Just like any other income, annuity payments are taxed at your usual rate of Income Tax. If you have other sources of income, or are only using one part of your pension to purchase an annuity with the remainder accessible through income drawdown, then before making a decision you could benefit from discussing your circumstances and requirements with a financial planner.

Do you have any questions? Call us on 020 7129 9999 or


Important information

The decision to access your pension is an important one and will affect your income and possibly your standard of living for years to come. Therefore we recommend that before any decision is made you receive regulated financial advice or get free guidance from Pension Wise. Find out more about Pension Wise.


Past performance is not a reliable indicator of future returns

The value of your investment can go down as well as up, and you can get back less than you originally invested.

The Bestinvest Online Investment Service, including any account analysis and investment reports provided by our guidance services, is an online execution-only dealing service for investors who want to make their own investment decisions. It does not provide advice on the suitability of products and investments; if you are unsure about the suitability of any investment you should seek professional advice. Clients of our Investment Advisory Service and Managed Portfolio Service can use the website to obtain current valuations of their investments but cannot trade on these accounts online and should call their adviser if they wish to discuss changes to their investments.

Past performance or any yields quoted should not be considered reliable indicators of future returns. Restricted advice can be provided as part of other services offered by Bestinvest, upon request and on a fee basis. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Issued by Bestinvest (Brokers) Limited (Reg. No. 2830297), which is authorised and regulated by the Financial Conduct Authority. Financial services are provided by Bestinvest (Brokers) Limited and other companies in the Tilney Bestinvest Group, further details of which are available here. This site is for UK investors only.
© Tilney Bestinvest Group Ltd 2016.

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