Lifetime annuities are provided by life insurance companies, converting your money purchase pension into an income for the rest of your life – however long you live. With different types of lifetime annuity and different add-ons depending on individual needs and circumstances, there is an annuity for everyone.
Whether you want to provide for your spouse or partner in the event of your death, or you want to benefit from a higher income if you are living with an illness or medical condition, we can provide you with advice you need to choose the right lifetime annuity for you.
The amount of income an annuity will pay depends on several factors, including:
- The amount in your pension fund after taking any tax free cash
You must take any tax-free lump sum before your 75th birthday.
- Whether your fund includes National Insurance rebates
if you contracted out of the additional State pension and if you are married or have a civil partner. (In which case, you must buy a 50% spouse’s pension with funds arising from National Insurance rebates.)
- Your health or lifestyle
Some annuities pay you a higher than normal income if your health or lifestyle threatens to reduce your lifespan.
- Your age
Historically the older you are the higher income you get because, on average, an older person has fewer years left to live than a younger person.
- Your sex
Usually the starting income from the same size of pension fund is higher for a man than for a woman of the same age. (This is because, on average, the life expectancy of a man is less than a woman of the same age.)
- The type of benefits you choose
- Whether the annuity is for you, or for you and your spouse or partner
- If the annuity is level or escalating
- If it is guaranteed to pay out for a minimum number of years, even if you die during that time.
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Contact us today for your FREE initial consultation or find out more about how we can provide you with specialist guidance and advice that covers Savings and Investments, Pensions, Mortgages and Protection as well as a range of Additional Financial Services in Newbury, Reading and Oxford.