Guaranteed income for life

Get an income for life with an annuity

What our annuity offers

From age 55 onwards you can convert some or all of your pension into an annuity that will give you guaranteed income for the rest of your life. You’ll get paid regularly, much like a salary, and it’s taxed as an income.

Secure choice

It’s a low-risk way to use your pension

Guaranteed income for life

Know what you’ll receive and when, no matter how long you live

Up to 25% tax free

As with other options, you can take your tax-free amount, then buy an annuity

Remember that tax benefits are subject to change and depend on your individual circumstances.

You can tailor your annuity to meet your needs, including options to provide for a person of your choice after you die. To see how it could work for you, try our annuity calculator.

How it works

Discover how you can get a guaranteed income through an annuity. 

1

Choose how much to convert

You can use some or all of the money in your pension to buy an annuity. It can be combined with taking tax-free cash from your pension, but you must take any tax-free cash from the part of the pension you are converting to an annuity before the annuity is set up.

2

Buy a guaranteed income

First get a quote for the income an annuity will give you to see if it’s right for you. The income is based on the amount of pension you use and the options you choose, plus your age, health and where you live. You can’t make any changes to your annuity once it’s set up.

3

Get regular payments

Your annuity provides regular payments for the rest of your life. All payments stop when you die unless you’ve chosen a protection option that pays a spouse, partner or other dependant.

What our annuity offers

Buy a guaranteed income with our annuity and you’ll know what you’re getting for the rest of your life.

  • Guaranteed income for life
    Once you set up your annuity it will pay you an income for as long as you live. You can choose how frequently this is paid
  • Secure choice
    Its value won’t go down and it can’t be lost or stolen
  • Higher income for poor health
    You can receive a higher income if you’re in poor health or there are other factors that can affect your health, like smoking
  • Choose options that suit your circumstances
    You can choose to increase the income yearly and select the frequency of payments, plus provide an income or lump sum to a spouse, partner or other dependant after you die
  • No surprise fees or charges
    We take into account all fees when working out your income when you apply – there are no other charges
  • Up to 25% tax free
    You can take up to 25% of your pension as tax-free cash and use what’s left to buy an annuity that provides a guaranteed income for life.

Before you buy an annuity

To buy an annuity you must be between 55 and 90 years old. And there are some important things you need to be aware of.

  • If your pension is with another provider you need at least £10,000 in your pension after any tax-free cash is taken and any adviser fees have been paid (for Aviva pension holders there’s no minimum)
  • Once you set up your annuity you can’t make any changes to it or get back any of the lump sum you used to buy it with
  • Because our standard annuity only pays an income while you’re alive, you may get back less from your annuity than you pay for it
  • You’re likely to pay income tax on the money you get from an annuity, so you should factor this in to your calculations of what you’ll receive. The amount of tax you'll pay depends on your individual circumstances
  • There are different annuities to choose from and the rates they offer can vary. Shop around to make sure you get the best deal for your situation and speak to a financial adviser before you apply

Apply for an annuity

Already have a pension with us?

0800 029 4010

Monday to Friday: 09:00 17:00

Pension with a different provider?

0800 068 3038

Monday to Friday: 09:00 17:00

Important documents

Before you apply for our annuity, you should read and understand all of the details.

Is it right for you?

In most cases you have options for how you use your pension from age 55 onwards. Buying an annuity that pays a guaranteed income is one of them.

Cover your everyday costs

Being able to maintain her day-to-day lifestyle was top priority for Susan. She worked out the monthly cost of all her bills and commitments and found she could buy an annuity that would cover it, paying her a monthly amount she could rely on. She chose the option to have her annuity income increase annually with inflation for extra security 1.

Worried about running out of money?

Having received a salary all his adult life, David’s biggest fear was running out of money when he stopped work. He looked at all his options and decided that an annuity that gave him a predictable, monthly income for the rest of his life was what he needed to put his mind at ease and to keep his independence 1.

Financial advice

Make sure you speak to a financial adviser before you apply. Their advice may come at an additional cost, but they can help you decide if this is right for you.

Pension Wise

This government service offers free and impartial guidance on your retirement options, either over the phone or face to face.

Visit Pension Wise

pension wise

How much could you get?

Use our annuity calculator to get an estimate of your guaranteed income.

Contact us

Give us a call to talk about an income for life.

0800 029 4010

Monday to Friday: 09:00 17:00