What is an annuity?
If you are looking for a secure, guaranteed income in retirement, then an annuity could work for you. An annuity is an income product purchased using your pension savings, like an insurance plan it guarantees a regular income payment. The income you receive is dependent on the annuity rate offered by the provider and will be guaranteed for life or over a fixed-term depending on the option you choose.
As with all income products, you can purchase an annuity from 55 years old and take up to 25% of your funds as a tax-free lump sum.
A Lifetime Annuity guarantees an income for the rest of your life, regardless of how long you live. Your pension won’t ‘run out’, but you won’t have the option to make changes.
Giving you a secure income over a minimum term of 3 years, a Fixed-Term Annuity allows you to review your options at the end of your chosen period.