Annuities

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Income Drawdown

You can choose Income Drawdown (unsecured pension) as an alternative to an immediate annuity purchase, if you are aged between 55 and 74.

With this arrangement, you should first take your tax-free cash element, (it cannot be taken later), and the balance remains in your selected pension fund. There is an exception to this in the case of phased drawdown, whereby your tax free cash and income requirements can be combined.

You can now draw down a chosen amount of between 0% and 120% of the calculated single person's annuity value for the remaining fund. The residual fund can be converted into an annuity when you choose to end the Income Drawdown arrangement.

Income Drawdown is definitely not a suitable option for all. It is essential that any individual obtains the appropriate level of advice before committing to this course of action. Investments can go down as well as up and are not guaranteed.


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Minimum Term

Income is guaranteed to be paid until the death of the annuity holder, but it can also be modified to include any of the following options:

  • 5-year guarantee - annuity ceases at death of annuitant, or after 5 years, whichever is the longer


  • 10-year guarantee - annuity ceases at death of annuitant, or after 10 years, whichever is the longer


  • Joint life annuity - annuity ceases on the death of the second of two named annuitants


    • Spousal Benefits

    Your spouse can be protected after your death, by choosing reduction to half benefit, reduction to two thirds benefit or full benefit.

    Thus the annuity is adjusted to the new level at the death of the annuitant or at the end of the guarantee period (if selected), and continues until the death of the spouse.

    Annuity Escalation

    The annuity can either be paid at a fixed level or you can include an escalation at 3%, 5%, or at the % RPI (annual increase in retail price index). Thus you can choose to compensate for inflationary effects on your income. However the initial income level will be reduced if you choose escalation.

    Purchased Life

    A purchased life annuity is an annuity purchased with your own funds, instead of from a pension fund. It operates in the same way as a compulsory purchase annuity, but it has tax advantages.

    The entire pension which you'll receive from a compulsory purchase annuity is treated as taxable income much as in the same way as income from employment would be.

    However, when you buy a purchased life annuity, the part of the annuity income which is calculated as capital repayment to you, is free of tax.

    Your consultant can assist you in making decisions for such investments, and would be happy to provide comparative illustrations of such options.


    How an annuity will affect your life...

    You'll only get one bite of the annuity apple. Once you decide on and buy an annuity, there is no going back. This service is designed for those at or approaching retirement.

    The good news is that you now have the opportunity to choose your annuity, not just accept what your current pension fund provider offers you.

    Under what is called the 'Open Market Option' you can transfer your pension fund to ANY annuity provider.

    The aim of this website is to help you achieve better annuity returns than what is offered by your current pension provider.



    "One bad apple spoils the bunch"

    You've heard the proverb - make sure you choose VERY carefully which fund you sink your teeth into, it will affect your income for the rest of your life.

    Choose the right annuity provider and you could RECEIVE THOUSANDS OF POUNDS MORE INCOME during your retirement.


    Now you get to compare and choose

    There are a wide range of options, including with profit annuities, which can be selected when choosing an annuity scheme. The most widely used annuity options are listed on your right.

    The free no-obligation enquiry below will connect you with an annuity expert whose sole aim is to help you pick the ripest fruit.

    We abide by the Data Protection Act 1998 and any personal information we hold is handled properly.


    But is it really free?

    There is no charge to you for investigating your policy and you're under no obligation to follow any recommendations. By using a broker's service you will get advice that is paid for by the annuity company. You will not have to pay them a fee as your broker will receive a commission payment direct from the recommended annuity company.

    Your adviser's costs are already factored into the income that you are offered by the annuity provider. Read more about commissions.


    Annuity comparison enquiry

    annuity-logo-animation Receive annuity comparisons for free.

    Contact a professional Independent Financial Adviser now by completing our quick, confidential, annuity enquiry with absolutely NO-OBLIGATION.

    Fund before tax free cash taken (min. £30,000) IMPORTANT: For funds under £30,000 please visit Annuities Central

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