annuity rates uk

An annuity is a type of insurance policy that provides an income in exchange for a lump sum payment, usually from your pension fund. The larger the pension fund the larger the income.

How much you receive depends not only on the size of your pension pot but also on how old you are, whether you are male or female, and in some circumstances the state of your health.

There are also other factors to consider such as whether you would like the income to rise each year, if you would like it to cover both you and your partner, and how much of your pension fund you would like to take as tax free lump sum.

As you approach retirement your pension provider may give you an estimate of the income they can provide if you buy an annuity from them. Remember that you don't have to buy it!

For most people buying an annuity will be one of the most important financial decisions they ever make. By shopping around, taking advice, and considering your decision carefully you will not only find an annuity that best suits your needs but could also boost your pension income by hundreds of pounds a year.

Contact our independent financial advice team today to get a free initial consultation and see how we can help you to plan effectively for your future.