Advice on Pension Annuity

 

An annuity is a contract between an insurance company and a pension scheme member under which the member hands over all or part of their pension fund to the insurance company which agrees to pay out an income to the scheme member for the remainder of that person's life. The annuity would normally be paid monthly, quarterly, half-yearly or annually.

The amount of the annuity may stay the same throughout the years of payment or may have automatic annual increases built in. These increases may be at a fixed rate, e.g. 3% per year, or the rate of increase may vary, e.g. with the annual change in the Retail Price Index.

The annuity can be set up so that all or part of it reverts to your spouse or partner in the event of your death. Also they can be set up so that they are payable for a minimum period, say 5 or 10 years, even if you die before that period ends.

The value of the annuity is dependent on two factors – the size of the pot and the annuity rate offered by the insurance company selling the annuity. The annuity rate is basically the factor used to convert the accumulated fund into pension.

Annuity rates are calculated by actuaries using various factors – mortality, interest rates, age, gender and sometimes health. In general terms, annuity rates are higher the older a person is because future life expectancy is less. In the same way men get higher annuity rates than women of the same age due to men having lower-life expectancy.

The annuity contract once purchased cannot be reversed.

To have an independent expert get in touch with you to offer initial advice, simply enter your details below.

Enquiry Type General Pension Advice Transfering a Pension SIPPS Pension Review Pension Release Pension Annuities Income Drawdown Company Pension Full Name:* E-mail Address:* Telephone Number:*: Postcode: Preferred Contact Time: Morning Afternoon Early Evening On pressing the send button you will be contacted by Sweetland Associates Ltd who will ask some relevant questions about your pension requirements.

 

 

 

Sweetland Associates Ltd is registered in Wales under CRN4689304 and our registered office and business address is
24 Bridge Street Newport. Our telephone number is 01633 247700. Our e-mail address is sweetlandifa@btconnect.com

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