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The basic Pension Annuity (a Conventional Annuity) is calculated on your own life, at a fixed rate, but you can add extra benefits to this, the most common ones being:

• Income for your Spouse or Civil Partner
• Increasing either by inflation or by a fixed amount
• A guaranteed minimum period, i.e. 5 or 10 years
• Protection for your capital with Annuity Protection
• Linked to investment returns (see With Profit & Investment Linked Annuities)
• Enhanced or Impaired (see Enhanced & Impaired Annuities)
• All of these extra benefits have a cost, which means your level of income will be reduced.

If you have contracted out of the additional State Pension (SERPS or S2P), you must use that part of your pension fund to buy a Protected Rights Pension Annuity. You have the same options as with your other pension funds except that you must buy a joint-life Pension Annuity paying a 50% spouse's pension if you are married or have a civil partner.