A conventional lifetime annuity is the most popular annuity type, and is what people are often referring to when they talk about taking their pension income.
Once you have used your pension savings to purchase a lifetime annuity, you will be guaranteed a secure income for life. The amount that you will receive is determined at the outset, enabling you to accurately plan your finances in retirement. You can choose for your income level to stay the same, or to increase over time at a fixed rate, giving you some protection against future inflation.
There are a number of choices that you need to make when purchasing your annuity in order to ensure that you go for a retirement income that best suits your circumstances. We will take you through these when you request an instant lifetime annuity quote on our website or over the phone. Alternatively, you can read more about your annuity options here.
Other Types of Annuities
An investment annuity is generally linked to the stock market. As with all investments, these come with an element of risk because, as we in the UK have learned over recent years, investments can go down as well as up.
A fixed-term annuity gives you the opportunity to take a guaranteed income for a fixed period of time until you reach the age of 75. The amount you take can remain the same or can change over time; and the fixed periods can range from 3 years upwards. You have the opportunity to change the terms of your annuity at the end of the fixed period; however this type of annuity comes with the risk that the rates available to you when you reach this point may be lower than were available to you at the outset.
If you think that either an investment annuity or a fixed-term annuity is right for you, you should speak to one of our annuity specialists on Freephone 0800 975 5151 for more information as our online annuity calculator only compares lifetime annuities.Back to 'About Annuities'
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