Annuities explained

Wondering what a pension annuity is, and if it could be right for you? This video explains what an annuity is, some of the benefits available, and why Aviva could be the right choice for you.

Please enable your browser JavaScript to view the video

Transcript  for video What is an annuity?

If you’re looking for a secure and guaranteed income in retirement, an annuity could be the option for you.

You can buy one with money from your pension pot from the age of 55.

Put simply, an annuity pays you an income for the rest of your life. And we’ll pay you regularly, much like a salary. How much you’ll get depends on things like the size of your pension pot, which features you choose, your age and health.

Once your annuity has been set up, you can’t make any changes to it or cash it in.

When you use your pension to buy an annuity, the money you get from it will be taxed like an income, but you can take up to 25% of your pension in tax-free cash before you buy your annuity. Taking tax free cash will reduce the amount of income you’ll get.

We allow for all fees when we calculate your income – so there are no hidden charges or unwanted surprises.

The income is guaranteed no matter what happens with the ups and downs of the stock market. And we’ll keep paying you no matter how long you live.

You can also choose an annuity that goes up over time, helping to secure against rising prices.

Because it’s personalised to you, you’ll get a higher income if you have certain medical conditions when you buy our annuity.

Different annuity providers offer different rates and options. Shopping around can help you find the annuity that’s best suited to your circumstances, or the one that pays the highest income. We’ll support you with shopping around to make it easier for you to find the right deal.

Some people worry that choosing an annuity could mean there will be nothing left for their loved ones if they die early. But with our annuity, you can have peace of mind by choosing to leave a guaranteed income for someone close to you.

We’ve been helping people like you safely plan for their futures for over 325 years.

We’re the UK’s number 1 provider. Trusted by our customers to take care of more than 1 million annuities.

So if you’re thinking about retirement with the certainty of a guaranteed life-long income, why not try our annuity calculator? It takes just two minutes to get an idea of how much income you could get.

Or call us to talk to one of our annuity experts.

Pension annuity

An annuity can act as a solid platform for your retirement, giving you a guaranteed income for the rest of your life. You can buy one with money from your pension pot from the age of 55 (57 from 6 April 2028 unless you have a protected pension age). It's a bit like still having a salary – you're paid regularly, and you'll pay income tax on the money you receive. Because it's guaranteed, you can make plans for your retirement knowing that we’ll keep paying you no matter how long you live.

Different annuity providers offer different rates and options. Shopping around can help you find the annuity best suited to your circumstances, or the one that will pay you the highest income. Once your annuity has been set up, you can’t make any changes to it or cash it in.

Visit Aviva pension annuities

Get in touch

Have a chat with one of our annuity experts. They’ll answer all your questions and queries and help you find out how much your annuity income could be.

Talk to an annuity expert

0808 304 1441

  • Monday to Friday: 9:00am - 5:00pm
  • Weekends and Bank Holidays: Closed

Calls to 0800 or 0808 numbers from UK landlines and mobiles are free. For our joint protection, calls may be recorded or monitored, and saved for a minimum of 5 years. Our opening hours may be different depending on which team you need to speak to.

Pension annuity articles