Provided by: Premier Retirement Services
You could increase your income in retirement by up to 40%* depending on your medical situation.
Call 01737 233 435 Mon - Fri 9am - 8pm
* Source date: 04/10/2013. 40% is achieved by comparing the lowest standard annuity rate against the best enhanced rate for a person who has specific medical conditions: diagnosed with bowel cancer 2 years ago, treated with surgery and takes 2 medications daily. Quotes are based on a RH2 7RT postcode, for a 65 year old individual with a pension pot of £25,000 with a 5 year guaranteed period, no escalation and no value protection, which have been obtained from a leading panel of providers via Premier Retirement Services. The comparison is based on rates available via the open market option only and it should be noted that smaller increases will be achieved for less serious medical or lifestyle conditions.
An annuity is a financial product that you buy when you retire. It is designed to provide a guaranteed income for the rest of your life.
Normally you'd buy an annuity with the money you've saved into your pension fund, or, perhaps, with a lump sum from some savings or investments. You can choose to take up to 25% of your fund as tax-free cash, although this will mean you will receive a lower income in retirement.
Once bought, your annuity will then pay you an income (usually monthly) for the rest of your life. Income from an annuity is taxed and is usually paid net of basic rate tax. Higher rate taxpayers may be liable for additional tax.
Once purchased you cannot change your retirement annuity, so it's important to purchase the right product.
There are a number of factors that will affect the amount of income you’ll receive in retirement. For a standard annuity this will principally be your age, however, you may qualify for an enhanced annuity. Some companies offer higher annuity income to people with health or lifestyle conditions, and would consider for example:
Taking time to use our online annuity planner could increase the amount of income you receive for the rest of your life.
Annuity jargon guide - we've compiled a jargon buster for some of the common terms you are likely to hear.
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