Pension Income Calculator
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.
A lifetime annuity doesn’t offer the flexibility of other retirement products such as Flexible Access drawdown but your money is secure. It does offer you guarantees and long-term security
- A guaranteed, fixed amount of income every year for the rest of your life
- The income is guaranteed with no Investment risk.
- 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
Might be suitable for you if
- You want a guaranteed income and you like to know exactly how much regular income you will receive for the rest of your life
- 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
- 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:
- joint-life annuity – your partner will continue to receive an income if you die, this can be the same income or a reduced amount
- 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.
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