A future of regular instalments
Use your pot (or part of it) to buy a guaranteed income which can last for the whole of your life or for a fixed term. We shop around to ensure you receive the biggest possible income given your circumstances and health.
Annuities are contracts sold by insurance companies that promise the buyer a future pay-out in regular instalments, usually monthly and often for life.
Choosing a lifetime annuity
A lifetime annuity provides a regular income for life in return for a lump sum. This guarantees that the money won’t run out before you die. This is very suitable if you want the certainty of receiving regular payments throughout your life or if you want to provide income for someone else after you die. The lifetime annuity is not suitable if you want more flexibility about how much to take as income and when.
Choosing a fixed term annuity
A fixed term annuity provides you with a guaranteed income for a set number of years with an option to get money back at the end of the term. This is suitable if you want set, regular amounts of money over a period of your choice or if you want money back at the end for another reason. This option does not guarantee income for life or allow you to draw cash from your pension pot as and when you choose.
Choosing an impaired or enhanced annuity
Impaired or enhanced annuities pay out a higher income if your health or lifestyle may shorten your lifespan, e.g., you have an existing health condition or you smoke. The provider would ask a number of health questions to consider whether you are eligible for this type of annuity.
Choosing a level annuity
A level annuity will pay you the same income each year. These types of annuities do have a higher starting income than an escalating annuity, but they can leave you vulnerable to inflation.
At Resolve Financial Solutions, we shop around to ensure you receive the biggest possible income given your circumstances and health.
For more information or to discuss the annuities available to you, please get in touch.
- In the event of death, depending upon the type of annuity you have purchased, benefits to your beneficiaries could be lower than those enjoyed under some of the other options available to you. The benefits may cease on death.
- Once purchased, changes to the contract cannot be made. For example, it will not be possible to amend the basis chosen, the provider selected or the level of income selected at onset.
- There is no surrender value at any time.