What annuities can do for you
An annuity pays you a guaranteed income for the rest of your life. You can buy one with a lump sum, usually from your pension.
Guaranteed income for life
Receive regular income payments, no matter how long you live
Individually calculated
Your income quote is based on your personal circumstances
Range of options
There are plenty of different annuities designed to suit particular needs
Get to grips with annuities
How does an annuity work?
An annuity will provide a guaranteed, regular and taxable income for the rest of your life. An annuity can provide certainty that you’ll receive a predictable amount, much like a salary, and it won’t run out, no matter how long you live.
How is an annuity calculated?
There are several factors that will affect the income you can receive, including your age, health, where you live and the size of your pension or lump sum.
What happens to your annuity when you die?
Generally, because an annuity is only designed to pay an income to you while you’re alive, payments will stop when you die. This does mean that if you don’t live for long after buying an annuity you could get back less than you paid for it.
Most annuities have guarantees availiable, through which your dependants will get some money back if you die within an initial period, plus you may have the option to provide for a spouse, partner or other dependant.
Annuities we offer
We offer 3 different annuities. All offer an income for life, but they work in different ways to suit particular needs.
Pension Annuity
The most popular choice, our Pension Annuity gives you a guaranteed income for the rest of your life and takes into consideration your health and lifestyle when calculating your income.
With-Profits Pension Annuity
Our With Profits Pension Annuity gives you a regular income for the rest of your life, but the income changes in line with investment returns. You can only buy this product through a financial adviser.
Immediate Life Annuity
Similar to our Pension Annuity, our Immediate Life Annuity is not bought using your pension, but with savings, investments or an inheritance. You can only buy this product through a financial adviser.
Things to consider before applying
An annuity is just one of your options for using your pension savings and it’s not the right choice for everyone. There are some things you need to be aware of.
- Once an annuity is set up, you can't usually make any changes to it or get back any of the lump sum you used to buy it with
- All annuity payments stop when you die unless you’ve chosen a protection option that pays a spouse, partner or other dependant
- Depending on how long you live, you may get back less from an annuity than you paid for it
- You don’t need to buy an annuity from your pension provider. It’s a good idea to shop around to make sure you get the right deal for you
Pension Annuity calculator
Use our annuity calculator to get a quote for a guaranteed income.
Financial advice
If you’re not sure whether an annuity is right for you, or how to make the best use of your pension options, you might want to talk to a financial adviser.
Pension Wise
This government service offers free and impartial guidance on your retirement options, either over the phone or face-to-face.
Options for using your pension
Find out more about the retirement options we offer and compare your options.
Retirement articles
Take a look at our latest news and guides.
Is it ever too late to start saving?
No matter your age, with a workplace pension you'll benefit from a tax-free lump sum and maybe even employer contributions.
See how to save even more
Busting those equity release myths
There are a lot of ifs and buts surrounding our equity release product. We're here to help you separate the facts from the fiction.
Bust those myths
Find your lost pensions
Keeping track of pensions from jobs gone by can be tricky. But pinning down those lost pensions may make it easier when you’re retirement planning.
Track your pensions
Thinking about taking an income from your personal or workplace pension?
We look at the things to consider before you take your money from your personal or workplace pension, including the potential impact of coronavirus on your pension fund.
Read more
The pandemic and your workplace pension
If you’re wondering what the coronavirus pandemic could mean for your workplace pension, read on.
Read more
Has lockdown affected your monthly budget?
Lockdown has brought many changes to our lives, but how has it changed your spending and saving habits?
Read more
Understanding your pension statement
What’s in your pension statement and how often is comes will all depend on the type of pension you have.
Get to know your statement
Pension scams to look out for
With so many scammers around, there are things you can look out for to keep your hard-earned pension money safe.
Spot the scams
Understanding inheritance tax
Planning what to leave your loved ones? See if you can reduce any inheritance tax that may be due.
Get to grips with inheritance tax
Are you paying more tax than you need to?
There are practical things you can do to reduce your tax bill to make year-end tax planning much less taxing.
Get tips on tax
Investing in property to fund retirement
Food for thought if you’re considering renting out a property to fund your retirement or you’re already a private landlord.
More on renting properties
Make the most of pension tax relief
See how to make the most of the tax relief you get from the government for paying into your pension.
Maximise your tax relief
How much income will you need?
When you’re retirement planning, having a clear idea about how much income you’ll need – and for how long – is key.
See how much you'll need
Moving your pension into one pot
Transferring all your pensions into one could save time and provide a clearer picture when you’re making retirement plans.
More on transferring your pension
From gardening to gin making
Read more
Financial tips for a golden gap year
See how to free up some cash so you can finally see those places you've only ever dreamed of visiting.
Use your pension to see the world
Product provided by: Aviva Life & Pensions UK Limited. Registered in England No. 3253947. Registered office: Aviva, Wellington Row, York, YO90 1WR. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Firm Reference Number: 185896.
Aviva UK Digital Limited introduces to Aviva Life & Pensions UK Limited for annuities. Aviva UK Digital Limited is registered in England No. 09766150. Registered office: St Helen's, 1 Undershaft, London EC3P 3DQ. Authorised and regulated by the Financial Conduct Authority. Firm Reference Number: 728985.