A Pension Annuity is a way of converting your pension savings into an income for life. The main points of a Pension Annuity are:
- You can take a tax-free lump sum from your plan, normally 25%, and purchase the annuity with the remainder
- Income guaranteed for life
- When you die, payments stop, unless you have chosen a joint life annuity or a guaranteed payment period
- They are simple to understand and give security and peace of mind
- Annuities are based on the concept of "mortality cross subsidy" so they insure you against out living your assets
If you would like to discuss your options with one of our specialists call us FREE on 0800 03 04 008.