Immediate Life Annuity

Guaranteed income for life

  • You can choose to ensure your annuity is paid for up to ten years after your annuity starts, even if you pass away within the guarantee period
  • There are no hidden costs or fees once your annuity is set up
  • You decide when you want to be paid

What is an Immediate Life Annuity

An Immediate Life Annuity provides you with a guaranteed income for life. If you are aged between 55-95, using a minimum one‑off payment of £7,500 from savings or pension tax‑free cash you can purchase the Immediate Life Annuity, with optional benefits for your loved ones if you die within the guarantee period.

  • Choice of income payments

    Decide whether you want to be paid every: 

    • month

    • three months

    • six months

    • twelve months

  • Guarantee income after death

    You can choose to guarantee an income for a set period. This could mean your family or other beneficiaries continue to get paid, according to the terms agreed, even if you pass away during this guaranteed period.

  • No Hidden Fees

    We won't charge extra once your annuity has started. We factor in our costs when we calculate how much income we will pay you.

  • Risk

    Once your annuity starts, you can't make any changes to it or cash it in.

The different annuity options you select will have an impact on the income you receive.

Already have a pension with us?

How it works in practice

If you decide to open an immediate life annuity, you’ll need to talk with an independent financial adviser. They’ll explain everything in more detail if you decide to go ahead. Here is more information to help you get started. 
  1. How the income works 
    We’ll pay you an income for as long as you live, and to your beneficiaries if you pass away during the guarantee period.
  2. How paying in works
    - You'll need at least £7,500 after adviser charges if you're paying for this yourself.
    - If someone's buying the annuity on your behalf, such as the trustees of a will, they'll need at least £100,000 after adviser charges.
  3. The amount we’ll pay depends on
    - your age
    - interest rates at the time
    - guarantee period
    - the amount of the single payment when opening the annuity
    - whether you choose a fixed income or annual increases
  4. How flexible is this annuity policy?
    - Payments from an annuity may be made
        • for your lifetime only 
        • for yours and an additional annuitant’s lifetime
    - You can choose to receive smaller payments at the start, which then increase by 0.5% to 5% annually.
    - You can decide when you are paid, for example, if you choose a monthly payment this can be at the start of the month or the end of the month.
Portrait of an elderly woman

Things to be aware of if you take out one of our immediate life annuities

Guarantee period

We offer a one-year guarantee period as standard, though you can extend this for up to 10 years. So, if you or other annuitants die after 90 days but within the guarantee period, we'll continue to pay out to the other annuitant or those named in your estate until the guarantee period ends. Depending on how long you live, you may receive less in payments than the amount you paid for the annuity.

Value protection

We off 90 day value protection as standard, though you can extend this. We'll pay the annuity's value (minus any payments already made) to your estate or to the estate of the last policyholder to die.

Changing your mind

You get 30 days to cancel your Immediate Life Annuity once we've told you it's started. We'll include a cancellation form within your confirmation pack. You will have to return any income payments you've already received if you decide to cancel. You cannot cash in the plan once the 30 days has passed.

Tax implications

Our Immediate Life Annuity may be taxed differently from pension annuities. HM Revenue and Customs may decide that part of your client’s payment is a return of capital and not subject to tax. 

Ready to get started?

You can get free, impartial guidance on your retirement options from the government-backed Pension Wise from MoneyHelper. An independent financial adviser will give you advice based on your own individual circumstances, and can help you choose the most appropriate annuity for you if you decide to do so.

Independent Adviser

When seeking financial guidance, it's essential to choose an independent adviser. Unbiased.co.uk offers a convenient platform to find qualified professionals in your local area, enabling you to make informed decisions with confidence.

Visit Unbiased "Read more about Independent Adviser"

Aviva financial advice

An adviser from the Aviva Financial Advice Team can guide you on all your financial planning options.

Explore advice "Read more about Aviva financial advice"

More options at retirement

We've got a range of retirement options that could be right for you. Follow the links to find out more about how these work, their benefits, risks and costs.

Flexible income

Income drawdown is a flexible way of using your pension - whenever you want.

Explore flexible income "Read more about Flexible income"

Pension annuity

Know exactly how much money you’ll get with our annuity that gives you a guaranteed income for the rest of your life.

Equity release

If you're a UK homeowner aged 55 or over, our lifetime mortgage is a way of borrowing money against your home. You can even safeguard a percentage of your home’s value to pass to your loved ones, although this will reduce the amount you’re able to borrow. Taking out equity release will reduce the inheritance you leave in future.

Explore equity release "Read more about Equity release"
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