Your annuity options
Scenario:
Joint life, level pension
Brian is married to Susan and he wants to ensure she receives enough income to live on if he dies first. As his other pensions are linked to inflation he wants to consider an annuity that continues to support her.
Scenario:
Single life, level pension
John is single and he wants to make the most of his current employer's pension scheme now, as he has other index-linked pensions he can live on later in his retirement.
Scenario:
Single life, escalating pension
Mary is married to Peter. Peter has multiple pensions which will provide him with enough income to live on if Mary dies first, however Mary is worried her pension will not keep up with the cost of inflation.
Scenario:
Joint life, escalating pension
Rob and Maria both have pensions, and they plan to use Rob's pension as their main income when they retire. However, Rob is anxious his pension fund might not be worth as much in the future.
When you set up your annuity it's fixed for life, so it's vital you choose your options carefully. You should consider both your immediate and long-term needs when making your decisions as well as those of any dependants.
Below we have listed the four main decisions you need to make when setting up your annuity. You can mix and match to suit your needs and requirements. If you can't find the option you're looking for please call our Helpdesk on 0117 980 9940.
Protected Rights pensions have certain restrictions
Who do you want to receive your income?
Single Life: Just myself
Your annuity income will be paid only to you throughout your life and will cease when you die.
Joint Life: Myself and my spouse/partner
You can continue to support your spouse or partner with up to 100% of your annuity income after you die.
Do you want your income to remain level?
I would like a level income
Your income will remain level and won’t increase. Although the income may be higher initially, you should bear in mind the effects of inflation over time.
I would like my income to track inflation
Your income will move in line with the Retail Price Index (RPI), and therefore track inflation and retain its buying power.
I would like my income to increase by a fixed percentage
Your income will rise by a fixed percentage each year (such as 3% or 5%). This means your income could counter the effects of inflation.
Do you want your income to be guaranteed for a fixed period?
I would like a guarantee period
A single life annuity can normally be guaranteed for a period of 5 or 10 years. If you die within this time the income will continue to be paid to your estate, or to the beneficiaries you nominated, for the remainder of the guarantee period.
If you wish to have a joint life annuity guaranteed, your income will usually be paid for the remainder of the guaranteed period in the first instance, normally in accordance with your will. At the end of the period your spouse’s income will be paid at the level specified.
I wouldn’t like a guarantee period
Unless you have opted for a joint life annuity, your income will stop upon your death, even if you die shortly after taking it.
How do you want your income to be paid?
Payment in advance
You will receive your first payment immediately.
Payment in arrears
Your income will be paid at the end of your chosen payment period, which can be paid monthly, quarterly, bi-annually or annually.
Get your FREE instant online annuity quote
Use our online annuity calculator to compare live rates from the UK's leading providers in an instant.
Important information
Annuity rates can change regularly and may go up or down in the future. Quotes are guaranteed for a limited time only. Once set up, an annuity cannot normally be changed or cancelled, so it is important to consider all your options carefully.
Client case study:
£1000 extra annual income for life
Mr Simpson explains how the Hargreaves Lansdown price promise helped him gain an increased income of over £1000 a year from his annuity.
Client case study:
Mr Simpson, Hertfordshire
I had a number of pensions that over the years I had transferred to the Hargreaves Lansdown SIPP. The low costs and boasts of great client service attracted me. When it came to setting up my annuity with another pension I had, I spoke to Hargreaves Lansdown but decided to try out their annuity price promise so also contacted more annuity brokers.
As promised it was Hargreaves Lansdown who came out on top with the best rates. They approached the leading standard and enhanced annuity providers, in the latter cases taking my medical history into account to maximise the rate I was offered. Their ability to obtain rates from the whole market quickly and efficiently means that I now receive more than £1000 extra every year.
Although I had been considering income drawdown previously I liked the security and peace of mind that an annuity offers. Hargreaves Lansdown took control of the situation and did all the hard work for me. Setting up the annuity was quick and clean and the payments all started on time. My wife and daughter are also clients of Hargreaves Lansdown and I would have no hesitation recommending their service to more family and friends.
Did you know?
There are 1,500 medical and lifestyle conditions that could qualify you for an enhanced annuity. Request your confidential medical questionnaire to find out if you qualify.
Request your questionnaireClient review
Having contacted a different annuity broker initially, I found Hargreaves Lansdown to be far superior. I am very pleased I trusted them in setting up my annuity.
Mr Johnson, Chelmsford
Have a question about your annuity?
If you would like more information please don't hesitate to contact one of our annuity specialists on:
0117 980 9940
- Mon - Thu:
- 8am - 7pm
- Fri:
- 8am - 6pm
- Sat:
- 9:30am - 12:30pm