Retirement Annuities

Annuities provide a guaranteed lifetime income and can include a spouses pension. We offer unbeatable quotes.

Post Retirement

Retirement Annuities are designed to provide you with a regular and guaranteed income for the rest of your life, and if considering this option, it is important to choose an annuity that reflects both your needs and those of your spouse where applicable. For some people an annuity is considered the most suitable way to receive their pension income, especially if prevailing annuity rates are high and they wish to avoid any potential market risks, in reinvesting their residual retirement fund.

However, for Defined Contribution type pension funds, annuities should always be compared against an ARF alternative, as especially from a succession perspective, ARFs offer their own advantages, and risk and reward can be managed. In choosing an annuity, adding a spouse’s pension, guaranteed period, and or inflation protection, lowers the amount of your pension payment (annuity). Careful individual assessment and expert financial guidance, is needed when deciding how best to use your residual retirement fund, after receiving your tax-free lump sum.

Post Retirement

A “single life” annuity provides a pension income for your lifetime, but ends thereafter.
A “joint life” annuity allows you to buy an annuity for yourself, but where part or all your income continues to be paid to a nominated survivor, such as your spouse, civil partner or partner. You must decide how much pension income is to be payable (as a percentage of your own income). The percentage of the annuity transferring over tot the second life, is usually either 50% or 66%. The higher this % is, the lower your own pension income will be.
You may choose an annuity that includes a "minimum payment period". Typically, people choose a 5 or 10 year period. If for example you choose 10 years, if you die in the second year, your dependants will continue to receive the original level of pension income, for the next eight years, or the insurance company may offer an immediate lump sum payment.
Overlap applies to annuities that include a minimum payment period. Upon the death of the main annuitant,
overlap if included, will mean that in addition to the joint life nominated survivor pension, the surviving life will also receive the original full annuity level until the minimum payment period has ended.
Most insurance companies offer annuities that protect, in whole or part, your pension income from future inflation. These types of annuities are called “escalating annuities” and mean your pension income can rise each year. Typically, you will be offered a fixed rate of increase e.g., 3% per year. However, choosing this type of annuity means your initial pension income will be lower.
If you are in bad health, or a heavy smoker at the time of retirement, you may qualify for an increased pension income payment known as an "enhanced annuity". This is higher than would be paid to someone of similar age, in good health and a non-smoker.

Post Retirement

Lower risk than other retirement products.
Will pay you an income, no matter how long you live.
If you are in bad health or a heavy smoker, you may qualify for a higher level of pension income.
You can choose an option that will enable you to provide for your spouse, civil partner or partner when you die.
You can choose an option that protects your pension income from inflation.

Once you’ve bought an annuity, you can’t cash it in, swap it for something else, or change your annuity options.
The level of your pension income is not flexible.
Depending on when you die, you may get back less than you paid in. Your fund can not be preserved as an inheritable asset.
Unless you choose otherwise, your spouse or partner will not be provided for and your payments will not be protected against inflation.
The options you choose, affect the level of pension income you receive, e.g., the more options you add, the more it will cost and the lower your pension income will be.

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Retirement Annuities

Annuities provide a guaranteed lifetime income and can include a spouses pension. We offer unbeatable quotes.

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