Manage your annuity policy

The easiest way to change your bank details is to give us a call. If you’re unable to call, please send us a signed letter – you’ll be able to find the right address on the most recent correspondence you've received from us. 

We’ll need your updated bank name, sort code and account number.

The account must be held in your name as either a sole or joint account.

Payments can either go into your UK bank account or, if you’re moving abroad, we may be able to pay directly into your overseas account.

Please note we may require documentation as proof of bank ownership if our electronic checks fails or we are unable to validate the details electronically.

You might need to include your annuity in divorce or separation proceedings. Even if nothing changes when it's settled, it might still impact your policy. Please get in touch to discuss this further.

The income you receive from an annuity will be taxed in the same way as income from a job, known as Pay As You Earn (PAYE). You’ll normally get each payment after any tax has been taken off.

To find out if you'll have to pay tax while living abroad, or to ask for your annuity to be paid without tax deductions, visit the government website.

Every year, if applicable, you'll get a P60 statement showing which tax code was used and how much tax was paid from your annuity income.

Statements won't be released until after the UK tax year ends on 5 April.

When you set up your annuity, you'll have chosen one of these options to decide how your payments increase:

1. The Retail Price Index (RPI) (Government set rate)
   - Based on inflation. If RPI is negative, we won't reduce your annuity payments.
2. The Limited Price Index (LPI) (Government set rate)
   - Based on the RPI of September the previous year. It won't rise more than 5% in any one year.
3. Fixed escalations (your payments increase by a set amount)

The statement you'll get in May will confirm which one you chose.

It's a type of annuity linked to our with-profits funds, so your income is based on their performance.

Even if an annuity decreases, it won't drop below the guaranteed minimum payment you selected.

You can convert a with-profits pension annuity to a conventional annuity after the first year.

If you're having trouble managing your pension you can choose someone to help or even make the decisions for you. This is known as ‘power of attorney’ and it's an effective way to deal with decisions around health, welfare and financial matters. If you're no longer able to make important decisions, and you don't hire an attorney, a deputy will be appointed by the Court of Protection.

We recommend speaking with a solicitor, and visiting your local government website for information about power of attorney.

• England & Wales
• Scotland
  
• Northern Ireland

A Letter of Authority is a legal document that grants permission to a third party, such as a financial adviser or solicitor, to liaise with a company on the customer’s behalf.

If the policyholder is alive, they, or anyone with Power of Attorney, can organise a Letter of Authority. If they’re deceased, only the executor can.