With Profits Pension Annuity

If you'd like to give your retirement income the potential to grow and you're happy to accept an element of risk, you could choose this annuity which invests in the Aviva Life and Pensions UK Limited With-Profits Sub Fund.

Your options

You can:

  • Buy a With Profits Pension Annuity providing you have at least £20,000 remaining after you've taken any tax free cash from your pension fund and paid any adviser charge.
  • Receive an income linked to the performance of the Aviva Life and Pensions UK Limited With-Profits Sub Fund which invests in a wide mix of assets (including company shares, fixed interest securities and commercial property) to help spread the risk.
  • Choose from a number of options which determine the starting level of regular income you will receive, for example adding a guaranteed period, spouse/civil partner/dependant benefits or the anticipated bonus level you select. Read more about the different options.

What are the benefits?

  • Growth potential. The amount of income you receive has the potential to increase over time.
  • Smoothing process. This is a method of reducing the ups and downs in the value of your investment by paying out the returns through a system of bonuses. There may be times in extremely poor market conditions when smoothing cannot fully protect your pension income. Read more about bonuses and find a guide to this annuity plan below.
  • Income choice. Your income can be paid monthly or yearly, either 'in advance' (from the start date) or 'in arrears' (at your chosen payment interval after the start date).

Things to think about

  • Depending on how long you live you may get back less than you bought your annuity for.
  • Our With Profits Pension comes with a one year guarantee and 90 day value protection as standard. For further details, please read the With Profit Pension Annuity Key Features. You can choose to extend your guarantee period along with other options.
  • No cash-in value. Once you've bought your annuity it cannot be cashed in at any time. You need to be sure its right for you as you might not be able to make any changes once its started.
  • Charges which apply. We take our charges into account when we work out your initial income and when we decide the bonus to be added to your pension income each year. More information can be found in the Key Features document.
  • Tax. Payments from your With Profits Pension Annuity will be taxed as earned income.
  • 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.

  • Your income will vary. The amount of income you receive has the potential to go down as well as up. However, our guaranteed minimum floor means your income will never fall below a specified minimum amount. Please be aware that your income will not necessarily keep up with inflation.
  • Bonus calculations. Your income is based on the Anticipated Bonus Rate you choose and will fluctuate in relation to any regular and additional bonuses declared each year. Find out about bonuses and returns.
  • Changing your plan. After 12 months you can change the Anticipated Bonus Rate within the limits in force at the time, or you can convert your plan to a Pension Annuity. In both cases, we'll recalculate your pension income. However, the other options you choose at the start of your plan can't be changed.

Next steps

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.

For more information

Call us on

0800 533 5195

Lines are open:

Monday to Friday, 9.00am - 5.00pm

Calls are free from UK landlines and mobile phones. For our joint protection, telephone calls may be recorded and/or monitored.

If you are unsure whether a product or service is suitable for you, you should seek financial advice. For more information about getting personalised financial advice, visit our financial advice page.

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.

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.

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