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Annuity RatesWhether you’re fit and healthy, suffering from poor health, overweight or a smoker, we’ll find you a higher annuity income for your retirement.
Annuity OptionsYou can add various options to your annuity to tie in with your personal circumstances. Click here for details of the options that might apply to you.
Annuity TypesIt’s important that you select the right type of annuity for your requirements. Click here for details of the various annuities available.
Annuity Types
Different types of annuities for different situations
There are many different types of annuities to choose from, and it is important that you purchase the right annuity, especially if you suffer from ill health or if you’re a smoker. Please contact us if you would like some assistance in selecting the right annuity for your particular circumstances.
The term lifetime annuity is a generic term, covering the annuities described below. You can add different annuity options depending on your particular needs and circumstances.
A conventional annuity provides a guaranteed income for life, and is for those people who are of good health and non-smoking. You could, however opt for a fixed income, an income that goes up by a fixed percentage each year, or an inflation-proof annuity. Please see the standard annuity rates page for some example quotes.
A single-level annuity is the simplest type of annuity, and it pays out exactly the same amount to an individual (the “annuitant”) every month until the annuitant dies.
Annuities for those who suffer from ill health
Then we have an enhanced annuity, or an impaired life annuity. These are designed to pay you more income if you’re suffering from ill health, if you are a smoker, or if you’ve ever been hospitalised.
Many hundreds of medical conditions can be considered, with even mild conditions qualifying for these higher annuity rates. To check out quotes please see the smoker annuity rates and enhanced annuity rates pages.
Investment linked annuities
A with profits annuity is an annuity that pays an income for life with the potential for growth above inflation over the long-term, and does contain a degree of risk as the level of income can vary.
A unit linked annuity is similar to a with profits annuity but with greater risk, as it invests in units in investment funds. Again, the level of income can vary.
Other types of annuities
A protected rights annuity is designed purely for those National Insurance rebates that have accrued in your pension fund.
A temporary or short-term annuity allows individuals before age 75 to use part of a pension fund to buy a fixed-term annuity lasting up to five years. They can choose annuity options in much the same way as basic annuities.
Capital or value-protected annuities pay a lump sum on the death of the annuitant, equivalent to the difference between the original purchase price and total annuity payments made. The lump sum is taxed at 35%. They are only available to age 75.
Other information
See the annuity guide page for assistance in identifying the right annuity type to match your requirements. Alternatives to annuities are described on the other products page.
