Nathan Long 5 December 2018
If you plan to start taking an income from your personal pension in the New Year, there’s only one way you’ll be able to turn it into a guaranteed income for life: buying an annuity.
It doesn’t matter what happens to the stock markets or if you live to be 110 – you’ll receive an income for the rest of your life.
Even if you plan to use drawdown, we think it’s important to look at all your options and check how much annuity income you could receive. It might actually be higher than you expect.
And, as a festive thank you, if you get a quote using our annuity service by 19 December 2018, we’ll enter you into our prize draw to win 1 of 5 Fortnum & Mason Christmas hampers (terms apply - see below).
After getting quotes there’s no obligation to buy an annuity. But, remember, annuity quotes are only guaranteed for a limited time and rates could go up or down in future. You should carefully consider your options as once set up an annuity can’t usually be changed.
How to get a quote
- Fill in your details. Don’t forget to enter your health and lifestyle details, you could get a higher income if you do.
- Select your annuity options. Decide what options you’d like. For example, to help protect your income from rising prices, you could link your annuity income to inflation or consider whether you want your income to continue to be paid after you die.
- Request quotes. That’s it - you’ll get your quotes in seconds and you’ll be entered into the prize draw.
Two ways to get a higher annuity income
1. Shop around
You’ll probably be able to buy an annuity through your existing pension provider but they might not offer the best rate.
That’s why, after checking your pension doesn’t have any valuable guarantees or benefits attached, you should shop around and get quotes from across the market.
Our annuity service can get you quotes from the UK’s leading providers within minutes.
2. Provide your health and lifestyle details
Enhanced annuities pay a higher income based on your health and lifestyle details. You don’t have to be ill to qualify. In fact, more than half of our annuity clients qualified last year.
Below are some examples of the higher income you could receive.
Annual income from a £100,000 pension
We generated these quotes using our online annuity service on 27 November 2018. All quotes are for a single life annuity, paid in monthly in advance, with no escalation or guarantees built in. Quotes are for a 65 year old who is married and lives in an area which has an average life expectancy. When health details have been added, we've also said they drink 7 units of alcohol a week and have a Body Mass Index of 27. Annuity rates change often, so they could be higher or lower in the future.
What help is available?
What you do with your pension is an important decision. Once an annuity is set up it can’t normally be changed, so it's vital to choose your options carefully.
We strongly recommend you understand your options and check your chosen option is right for your circumstances. Take advice or guidance if you’re unsure.
The government provides a free and impartial service to help you understand your retirement options - more on Pension Wise.
This article is not personal advice. We offer a range of information and support to help you plan your own finances. We also have an award-winning advisory service who can help you achieve your goals. Our flexible approach means you only pay for the advice you need.
If you’d like to get annuity quotes over the phone, you’ll also be entered into the prize draw. You can call our annuity experts on 0117 980 9940. They’re available six days a week: Monday-Thursday 8am-7pm, Friday 8am-6pm and Saturday 9:30am-12:30pm.
What are the full terms of the offer?
1. If you obtain an annuity quote using our annuity service (a “Quote”) between 07:00am on 4 December 2018 and 11.59pm on 19 December 2018 (the “Offer Period”) we will enter you into our prize draw (the “Draw”) to win a hamper worth £150 subject to these terms and conditions. The Draw is free to enter.
2. To be eligible to win a prize, you must also:
- be 55 or older;
- be resident in the United Kingdom;
- not be an employee of any Hargreaves Lansdown group company or a member of any such employee’s immediate family or household;
- comply with these terms and conditions.
3. Upon obtaining a Quote in the Offer Period, you will be automatically entered into the Draw. You will only be entered into the Draw once. You will be entered into the Draw on the date you first obtain a Quote during the Offer Period and you will not receive an entry into the Draw for each additional Quote you obtain during the Offer Period. Quotes obtained after the Offer Period has closed will not be entered into the Draw.
4. Details of the terms and conditions of the Hargreaves Lansdown Annuity Service are available on our website here.
5. There are five prizes of a Christmas-themed hamper worth £150 to be won. Winners can decide to receive a cheque worth £150 if they would prefer an equivalent cash prize. Each entrant into the Draw shall only be entitled to win one of the five prizes. If you would like to opt out of the Draw, please notify us by calling 0117 980 9940.
6. The winners will be chosen by random draw on 20 December 2018 ("Draw Date").
7. The winners will be notified (using details provided at entry) either by telephone or, if we can’t reach the winners by telephone, by email, before 21 December 2018. If we haven’t heard from a winner by 3pm on 21 December 2018, we will hold on to the prize until we do. If we still haven’t heard from the winner by 21 January 2018, that winner will not be entitled to a prize and a draw will take place to select another winner.
8. The prizes will be posted to the winners using the address provided at entry within five working days of being notified of their win.
9. Our decision regarding any aspect of the Draw is final and binding and no correspondence will be entered into about it.
10. Participants are deemed to have accepted and agreed to be bound by these terms and conditions upon entry. We reserve the right to refuse entry, or refuse to award the prize to anyone in breach of these terms and conditions.
11. We reserve the right to replace the prize with an alternative prize of equal value if circumstances beyond our control makes it necessary to do so.
12. We reserve the right to hold void, cancel, suspend, or amend the Draw where it becomes necessary to do so.
14. The Draw will be governed by English law and entrants to the Draw submit to the jurisdiction of the English courts.
15. The Hargreaves Lansdown Annuity Service is provided by Hargreaves Lansdown Asset Management Limited, which is a limited company registered in England & Wales with company number 01896481 whose registered office is One College Square South, Anchor Road, Bristol, BS1 5HL.