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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'.

Hargreaves Lansdown is authorised and regulated by the Financial Conduct Authority.

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