What are annuities?
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.
When you buy an annuity you exchange all or part of your pension for a fixed income for the rest of your life. Your income will not normally change, and once you have bought an annuity you can’t change your mind. Before buying one it is important to compare rates between providers to find the most appropriate option.
The benefits of annuities
Fixed income
- Your income is fixed for life. You’ll know how much income you will receive and when it will be paid.
Freedom to choose
- You can shop around between companies – you don’t need to stick to your current pension provider.
Higher income rates for illness or smoking
- Enhanced annuities are based on your life expectancy, so they pay you more if you have a health condition or smoke.
Use part of your pension
- You don’t need to use your whole pension – you can use part and leave the rest invested or take income drawdown.
Expert advice on annuities
Through Evelyn Partners we have a team of annuity specialists who can give you advice on the various options available when buying an annuity, from discussing the best type of annuity for your circumstances to showing you how much income you could receive and guiding you through the annuity purchase process.
Got questions about your retirement income?
Speak to our experts about annuities and your other options for taking an income from your pension:
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