Annuities

Taking a guaranteed, lifelong income from your retirement pot

When you reach retirement, you’ll want to start using the pensions savings you’ve spent decades building up. And depending on whether you want to have a regular retirement income, or something a little more flexible, you’ll have several options when it comes to taking your pension.

Annuities are insurance products that let you exchange your pension pot (minus your tax-free cash) for a guaranteed, regular income for the rest of your life. Buying an annuity used to be the only option available to most people taking their pension. But the introduction of so-called ‘pension freedoms’ in 2015 opened up more choice to consumers, reducing their popularity. However, they remain a good option for many people entering retirement.

Find a Pensions Adviser

or call: 0800 915 0000

Find a Pensions Adviser

How does an annuity work?

Your annuity rate (the amount you’ll receive annually until you die) is calculated based on the size of your pension pot, your age, health, and lifestyle – as well as any other options you might add to the contract. If you want your annuity to be passed on to your spouse when you die, for example, that will influence the annuity rate you receive.

In some ways, an annuity is a ‘bet’ with an insurer about when you’re going to die. That’s because it’s guaranteed until the end of your life – whenever that is. The amount you pay in upfront may be more or less than the final sum you end up taking from the policy, depending on how long you live.

Many people value the certainty provided by an annuity, but any options you select at the outset cannot be changed later. So, if you buy an annuity contract that can be passed to your spouse when you die, and they die before you, you won’t be able to adjust the terms. And if you have a poor medical history or you’re experiencing ill health, you might be eligible for higher regular payments under an enhanced, or impaired life annuity (something you can’t move to later on).

For these reasons it’s crucial to seek professional advice before buying an annuity.

Articles related to

Annuities

What our clients say

Need Annuities advice?

Speak to a Annuities expert. Call us on:

0800 915 0000

Request a callback from one of our expert advisers

Find a financial adviser

Where and how we meet depends on whatever’s most convenient for you, but we have a number of locations around the UK if you’d prefer to come to us for bespoke financial planning.

Find a financial adviser
Financial Planners Regions

Other services we offer

We provide a complete range of financial services with specialists in every category so that we can match you with the most suited adviser for your needs

Small, but important print

Registration Number 03776035
Registered in England and Wales

Amber River Group Limited is not authorised to give financial advice. The financial planning businesses who are part of the Amber River Group are separately authorised businesses and therefore able to give advice.

You’ll find details of the regulated status of our firms, including FCA numbers and links to the Financial Services Register on each of the location pages in the ‘Find an adviser’ section.

The Financial Conduct Authority does not regulate National Savings or some forms of mortgage, tax planning, taxation and trust advice, offshore investments or school fees planning.

The information contained within this site is subject to the UK regulatory regime and therefore targeted primarily at UK-based consumers.

The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Find full details of the FOS at www.financial-ombudsman.org.uk

Please read our Privacy Statement before completing any enquiry form or emailing us.