Buying an annuity gives you a regular monthly payment from an insurer.
They will look at the value of your Account and your age and then, based on that and the options you choose, will agree to pay you a set amount each month for the rest of your life. When you buy an annuity, you will need to decide:
- Whether you want your income to increase each year (this could be in line with inflation or by a set amount).
- Whether you want to provide a pension for a spouse or dependant after your death.
- Whether you want the pension payments guaranteed for a set time, for example they will continue to be paid for five years after you retire, even if you die.
Depending on what type of annuity you choose and your annuity provider your income may vary.
You can get an enhanced annuity if you have health problems that might decrease your life expectancy. This can include heart disease, diabetes, high blood pressure, obesity and other conditions. It’s worth checking if you would qualify, as this would mean a higher starting amount for your pension.
To help you choose the right annuity product for you, the LifeSight Trustee provides a Guided Annuity Service through an independent financial advisory firm, HUB Financial Solutions. The Guided Annuity Service will help you understand which providers and annuity products may be most appropriate for your savings. You can read more about the service provided by HUB Financial Solutions here or about your retirement options here.