Immediate Life Annuity

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An Immediate Life Annuity is a retirement income plan that can be bought with your own money from non-pension sources. It can be bought with savings, investments, inheritance or the tax free cash lump sum from a pension fund. This annuity can provide you with a tax efficient, additional income from the age of 55. It provides you with a guaranteed income for the rest of your life and can be seen as a low risk choice.

What are the benefits?

  • Guaranteed income. It promises to pay you a regular income for life, so it's a low risk option.
  • Income choice. You can receive your income monthly, quarterly, half-yearly or annually. Payments can be 'in advance' (from the start date), or 'in arrears' (at your chosen payment interval after the start date).
  • Tax Advantages. HM Revenue & Customs may agree that part of your payment is a return of capital and therefore not subject to tax. Tax treatment will depend on your personal circumstances - a financial adviser will be able provide you with more information about your tax position. Tax rules may change.
  • No surprise charges. We take our charges into account when we work out the price of your initial annuity.

Things to think about

  • Depending on how long you live you may get back less than you bought your annuity for.
  • Our Immediate Life 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 an 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.

    Please see your terms and conditions or contact your financial adviser for further information and exclusions which may apply to the above.

  • Changing your plan. The options you choose at the start of your plan can't be changed.

Your options

You can:

Next steps

For more information

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We can give you all the facts about Aviva’s products and services.

We can’t give you advice. If you are unsure whether a product or a service is suitable for you we can put you in touch with a financial adviser who can give you a personal recommendation. This service will be restricted advice and is limited to a number of product providers. There may be a charge for their advice.

Alternatively, you can visit to find an adviser in your local area

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.

Pension Wise

Pension Wise has been set up by the government and offers free and impartial guidance 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.

If you are approaching retirement we recommend you get guidance or advice to help you understand your options.

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