What is a lifetime annuity?
A lifetime annuity provides you with a regular retirement income for life – with the guarantee that the money won’t run out before you die.
Other lifetime annuities include investment linked or flexible annuities – which have an income based on the investments chosen. They carry more risk than basic lifetime annuities in return for a potentially higher income. It’s important you choose the type and features best suited to your personal circumstances, your life expectancy and your attitude to risk.
It pays to shop around for an annuity
- A 2014 survey showed that 8 out of 10 people who stayed with their existing provider lost out by not switching. Source: Financial Conduct Authority, Thematic Review of Annuities, Feb 2014
- It’s your right to shop around and you’ll usually get a higher retirement income.
Tips before you shop around
If your existing pension provider offers a Guaranteed Annuity Rate it will be hard to match – be sure to ask and then compare quotes.
An annuity is just one of several options you have for using your pension pot to provide a retirement income. See our guide Options for using your pension pot to find out more.
Once you buy an annuity you can’t change your mind – get help or advice before you commit. Find out more in next steps at the end of this tool.
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