With Profits Pension Annuity

If you'd like to give your retirement income the potential to grow and you're happy to accept an element of risk, you could choose this annuity which invests in the Aviva Life and Pensions UK Limited With-Profits Sub Fund.

What are the benefits?

  • Growth potential. The amount of income you receive has the potential to increase over time.
  • Smoothing process. This is a method of reducing the ups and downs in the value of your investment by paying out the returns through a system of bonuses. There may be times in extremely poor market conditions when smoothing cannot fully protect your pension income. Read more about bonuses and find a guide to this annuity plan below.
  • Income choice. Your income can be paid monthly or yearly, either 'in advance' (from the start date) or 'in arrears' (at your chosen payment interval after the start date).
  • No additional charges. We take our charges into account when we work out your initial income and when we decide the bonus to be added to your pension income each year. More information can be found in the Key Features document.

Things to think about

  • Depending on how long you live you may get back less than you bought your annuity for.
  • Our Pension annuity comes with a one year guarantee and value protection as standard. You can choose to extend your guarantee period along with other options.
  • No cash-in value. Once you've bought your annuity it cannot be cashed in at any time.
  • What happens to your annuity when you die?

    If you die within the first 90 days of the date your plan starts, and any dependant named on the policy dies before you, Value Protection will apply and a lump sum will be payable to your estate.

    If you die after 90 days but within your guarantee period, payments will continue until the end of the guarantee period. These will be paid to your estate or dependant on the policy.

    If you have chosen for an income to be paid to a dependant and they are still alive, agreed payments will be made to them.

    Nothing on this site is personalised advice or a recommendation. If you need a personalised recommendation based on your personal circumstances, you should seek financial advice. We can't give you advice but we can put you in touch with an adviser who can talk to you about which financial products or investments may be right for you.

  • Your income will vary. The amount of income you receive has the potential to go down as well as up. However, our guaranteed minimum floor means your income will never fall below a specified minimum amount.
  • Bonus calculations. Your income is based on the Anticipated Bonus Rate you choose and will fluctuate in relation to any regular and additional bonuses declared each year. Find out about bonuses and returns.
  • Changing your plan. After 12 months you can change the Anticipated Bonus Rate within the limits in force at the time, or you can convert your plan to a Pension Annuity. In both cases, we'll recalculate your pension income. However, the other options you choose at the start of your plan can't be changed.

Your options

You can:

  • Buy a With Profits Pension Annuity providing you have at least £20,000 remaining after you've taken any tax free cash from your pension fund and paid any adviser charge.
  • Receive an income linked to the performance of the Aviva With-Profits Sub Fund which invests in a wide mix of assets (company shares, fixed interest securities and commercial property) to help spread the risk.
  • Choose from a number of options which determine the starting level of regular income you will receive, for example adding a guaranteed minimum term, spouse benefits or the anticipated bonus level you select. Read more about the different options.

Next steps

Pension Wise

Pension Wise is a free and impartial service set up by the government for people retiring with defined contribution pensions. It will help you understand what your choices are and how they work.

You'll be able to get help on the Pension Wise website, over the phone or face to face about:

  • what you can do with your pension pot
  • the different pension types and how they work
  • tax you pay on your pension.

If you're not sure about your options at retirement you should seek appropriate guidance or advice.

Speak to a financial adviser

Nothing on this site is personalised advice or a recommendation. If you need a personalised recommendation based on your personal circumstances, you should seek financial advice. We can't give you advice but we can put you in touch with an adviser who can talk to you about which financial products or investments may be right for you.

Call a member of our team on

0800 533 5195

Monday to Friday - 9.00am - 5.00pm

For our joint protection, we may record our telephone calls. Calls are free from a BT land line. Costs may vary from mobiles and other networks.

Alternatively, you can visit www.unbiased.co.uk to find an adviser in your local area

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