What is an annuity?
- An annuity is a secure income normally paid for the rest of your life.
- During your working life your pension builds up a pot of money. An annuity is the regular income that is bought with your pension fund at retirement.
- Once set up, the annuity is normally fixed and offers a secure income for the rest of your life. As it cannot normally be changed it is very important to consider your options carefully.
- Annuities are also known as 'secured pensions'.