Lifetime Annuities
A lifetime annuity offers you guarantees, long-term security and secures your money.
Lifetime Annuities - An income with a lifetime guarantee
A fixed, regular income for the rest of your life. The regular income payments are based on the size of your pension pot and other factors when purchasing the annuity such as:
- Your age, current health, and lifestyle
- What protection you build in for your spouse or dependents.
Lifetime Annuities features
A guaranteed, fixed amount of income every year for the rest of your life
The income is guaranteed with no Investment risk.
Up to 25% tax free lump sum
You can link your income to inflation – this will mean starting on a lower income than a “level” annuity
An enhanced annuity will pay you a higher income due to a decreased life expectancy if you have certain health conditions or lifestyle choices such as smoking
Is a lifetime Annuity plan for you?
Suitability
You don’t want any investment risk
You have an illness that requires medication such as diabetes, heart disease, you are a smoker, have a high BMP or high cholesterol
You want to protect your pension or leave an income to a loved one
Things to consider
You will NOT be able to cancel or change your annuity once it is set up even if your circumstances change. Therefore, you need to consider all your options carefully and shop around to get the best rate
Joint-life annuity – your partner will continue to receive an income if you die, this can be the same income or a reduced amount
Your income will stop when you die unless you include death benefits in your plan. If you want your income payments to continue for your partner or dependents when you die there are a few options:
A guaranteed period – where your income will be paid for a guaranteed period (up to 30 years) even if you die within that period. If you live beyond the guarantee period you will still continue to receive the same level of Income until you pass away.
Value protection – If you die before the total amount used to purchase the annuity is paid back in income; the remainder will be paid to your estate or your nominated beneficiary (including death benefit)
Adding death benefits or linking your annuity to inflation will reduce your starting income but may give you the added benefit of peace of mind in retirement.
Have a question? Talk to
our team …
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