Annuity
An annuity is a way of turning your pension savings into guaranteed income for life. You choose the shape of that income. Single life or joint. Level or rising. With or without guarantees for your family. Once it is set, it pays every month, whatever markets are doing.
What is an annuity
An annuity converts pension savings into income that is paid for life. The amount you receive is set when you buy it. It will not fall if markets move. It can be set for your life only or for two lives. It can stay level or rise each year.
Annuities work well for essential bills that must be paid whatever happens. Many clients blend a base annuity with drawdown for flexibility.
What this covers
Every retirement is different. These are the areas I usually bring together.
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Single or joint life income
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Level income or income that increases each year
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Guarantee periods so payments continue for a set time after death
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Value protection which can return unused capital on death
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Enhanced rates where health and lifestyle improve the income
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Partial annuitisation so only part of the pot is used
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Timing of purchase to fit markets and your plans
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Use of tax free cash alongside the annuity
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Blending with drawdown for balance
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Death benefit choices and how they work
Who this suits & why it matters
People who want certainty for core bills.
Couples who need reliable income for both lives.
Anyone who does not want to manage investments in retirement.
Those who sleep better knowing the basics are covered for life.
Retirement can last thirty years. Markets rise and fall. An annuity gives income that does not. It secures the foundations so the rest of your plan can stay flexible.
How I help
I map your essential and discretionary spending, then shop the market for the best terms. I factor in health details for enhanced rates, explain options clearly, and set the policy so it pays who it should, when it should.
Case study
At 63, a client wanted certainty for bills and freedom for travel. We bought a joint life annuity to cover essentials, with a ten year guarantee and value protection. The balance stayed in drawdown for flexible spending. They now have security and choice in one plan.
Your options
Single or joint life
Single life pays while you live. Joint life continues a set percentage to your spouse or partner after you die.
Level or increasing income
Level pays more at the start but loses spending power over time. Increasing income starts lower then rises by a fixed rate or by inflation.
Guarantee period
Income can be guaranteed for a set time, often five or ten years, so payments continue to your estate if you die early within that period.
Value protection
Returns some or all of the original purchase price on death, less income already paid. Useful if leaving money is important.
Enhanced annuity
Health and lifestyle can increase the income. Conditions such as diabetes, heart issues or high BMI may improve the rate. Smoking status matters too.
Partial annuity
Use part of your pension to secure the basics. Keep the rest invested for flexibility. This blended approach is common.
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