How much income could I get from my pension?

Contrary to popular belief, you won't necessarily get an income from your pension fund. You may need to use your pension fund to buy another product that will give you a regular income throughout your retirement. For many people, this is an annuity.

What's an annuity?

An annuity is a retirement income plan. You buy it with the money from your pension fund and it will give you an income for the rest of your life. The amount you receive depends on:

Your age
Your sex
How much you have invested in your pension fund
Your health

Your marital status
Your smoking status
Where you live
The options you choose
The adviser you choose.

You can also choose to provide an income for a dependant when you die.

There are different types of annuities, offering you a number of options. Please read our annuities section if you want to know more about annuities and how they work.

Check your income

One of the first things you need to know is how much income you could get.

Retirement income calculator

If you want a more in-depth look at how much income you could get from us when you retire and what options you have, try our retirement income calculator.

Calculate retirement income

Annuity quick quote

If you want a very quick quote on how much income we could give you when you retire, take a look at our quick quote tool.

Get a quick quote

If you have decided what annuity is right for you and want to buy one, why not read our before you buy section.

What if I only have a small pension?

If you only have a small pension fund, you may be able to take it as a lump sum. This is known as the triviality option. You can read more about this in the frequently asked questions section.

Related FAQs

What do you mean by an income from my pension plan?

Most people think that their pension fund will start paying them an income when they retire. This isn't true, unless you are in a defined benefits scheme. You must use your pension fund to buy another product - usually an annuity - that will pay you an income throughout your retirement.

What is tax-free cash?

Tax-free cash is money you can take as a lump sum from your pension fund without having to pay tax on it. You can spend this money on anything you want. You can usually take up to 25% of your pension fund as tax-free cash, although this may not be the case for everyone. For example, lump sums from final salary schemes are calculated differently. For the vast majority of people, tax-free cash will be a feature of their pension plan, but you should check with your pension provider what the rules are for your pension fund. You should also bear in mind that taking tax-free cash reduces the amount you can use to provide an income during your retirement. With Aviva this has to be taken by age 75. Read our 'Can I retire after I'm 75?' FAQ for more information.

If you have more than one pension fund and have already taken tax-free cash from one of those funds, you won't be able to combine that fund with any other pension funds you have. We can give you a quote for each individual fund and you will be able to take tax-free cash from the funds that you haven't yet taken money from. You can also combine any funds that you haven't taken tax-free cash from and get a quote for these funds. It is not always possible to combine your pension funds, please see ‘When is it not right for me to put all of my pension funds together?' FAQ. If you have any questions about this or are unsure what to do, please talk to your financial adviser or call us on 0800 068 4076 to speak to one of our advisers. We can only advise on our own products.

What do you mean by dependant?

You can choose to provide an income for your dependant if you die before them. This may reduce your income. A dependant could be your spouse, civil partner or a financially dependent adult.

What is triviality?

If your pension fund is small, you may be able to take it all as a cash sum rather than having to use it to buy an annuity. This is known as the triviality or commutation option. You have to be over the age of 60 and Aviva will only pay triviality up to the age of 75. The total value of all your pension funds, including those already being paid, has to be below £18,000 for the 2012/2013 tax year. The first 25% of this amount can usually be taken tax-free and the remainder will be subject to income tax. Read our 'Can I retire after I'm 75?' FAQ for more information.

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