Annuities

There are many types of annuities to choose from. If you’re buying an annuity it’s important you buy the right annuity; especially if you have any health or lifestyle issues.

Pension annuities

Conventional annuity

Out of all pension annuities a conventional annuity is the most commonly purchased annuity. It provides a guaranteed income for life, and is appropriate if you are in good health. A single life 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.

Enhanced annuity

From the various pension annuities available an enhanced annuity will pay you a higher level of guaranteed income for life if you smoke or have health problems, and for certain other aspects of your lifestyle.

Impaired life annuity

An impaired life annuity will pay you a significantly higher income if you’re seriously ill, perhaps suffering from a life threatening medical condition.

Investment linked annuity

An investment linked annuity could be right for you if you’re looking for the potential of a rising income. However, your future income does rely on investment performance, and the level of income can vary.

Protected rights annuity

A protected rights annuity is designed purely for those National Insurance rebates that have accrued in your pension fund.

Fixed term annuity

A fixed term annuity allows you to adapt your future income requirements in line with your changing circumstances, for example, if you fall ill in later life. You can buy a fixed term annuity for a period of three years or more.

Best annuity

What is important when you choose your annuity is that you get the best annuity for your circumstances. If you’re in poor health, for example, then the best annuity for you will be an enhanced annuity, which will provide you with more income.