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. You can read more about the bonuses and find a guide to this annuity plan.
• 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 surprise 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 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.
• No cash-in value. Once you've bought your annuity it cannot be cashed in at any time.
• You can take out an annuity that stops whenever you die. Or, alternatively, you can choose an annuity with a smaller income but which is guaranteed to be paid for at least either five or ten years, even if you die within this time. This is called the 'guarantee period'. If you live longer than the guarantee period, the annuity will still continue paying for the rest of your life.
• 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. 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.
• 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 to receive your income either monthly or yearly.
• 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.

How to apply

If our With Profits Pension Annuity seems right for you, or for further advice, talk to an Aviva adviser by calling 0800 068 3038* We can only advise on our own products. If you have an Independent Financial Adviser please contact them directly.

Read the key features of a With Profits Pension Annuity (PDF 112KB)

*Lines are open Monday to Friday 8.00am to 9.00pm, Saturday 9.00am to 5.00pm. Calls may be recorded and/or monitored

WC01025 01/2012