Skip to main content
MENU
  • Home
  • About Us
  • How We Work
  • Privacy Policy
  • Treating Customers Fairly
  • Contact Us
  • Pensions
    • Pensions
    • Introduction
    • NEST
    • Annuities
    • Income Drawdown
    • Executive Pension Plan
    • Occupational / Auto Enrolment
    • Personal
    • SIPP
    • SSAS
    • Stakeholder
    • State Pensions
  • Savings & Investments
    • Savings & Investments
    • Introduction
    • Collectives
    • Capital Investment Bonds
    • Fixed Interest Investments
    • Investment Trusts
    • ISAs
    • National Savings Products
    • OEICs
    • Offshore Collectives
    • Unit Trusts
    • With-Profits
  • Life Assurance
    • Life Assurance
    • Introduction
    • Family Income Benefit
    • Investment Linked
    • Whole of Life
  • Health Insurance
    • Health Insurance
    • Introduction
    • Critical Illness
    • Income Protection
    • Private Medical
  • Enquiry Forms
    • Enquiry Forms
    • General Enquiries
    • Pension Enquiries
    • Investment Enquiries
    • Protection Enquiries
  • Market Data
  • Research Links
  • Pensions
    • Introduction
    • NEST
    • Annuities
    • Income Drawdown
    • Executive Pension Plan
    • Occupational / Auto Enrolment
    • Personal
    • SIPP
    • SSAS
    • Stakeholder
    • State Pensions
  • Savings & Investments
    • Introduction
    • Collectives
    • Capital Investment Bonds
    • Fixed Interest Investments
    • Investment Trusts
    • ISAs
    • National Savings Products
    • OEICs
    • Offshore Collectives
    • Unit Trusts
    • With-Profits
  • Life Assurance
    • Introduction
    • Family Income Benefit
    • Investment Linked
    • Whole of Life
  • Health Insurance
    • Introduction
    • Critical Illness
    • Income Protection
    • Private Medical
  • Enquiry Forms
    • General Enquiries
    • Pension Enquiries
    • Investment Enquiries
    • Protection Enquiries
  • Market Data
  • Research Links
  • Home
  • Annuities

Annuities

(From April 2015, the rules involving annuities and income drawdown changed. Rather than having to purchase an annuity, pension savers can, if they wish, withdraw as much as they wish from their pension pots. In total, 25% of the pension pot can be taken free of tax; the balance being subject to income tax. Although this change may make annuities less attractive for some, many still prefer the security of knowing they have a guaranteed and secure income for life.)

What is an annuity?

An annuity is a contract between an insurance company and a pension scheme member, where the member uses some or all of their pension savings to purchase a regular and guaranteed income for the rest of his or her life or for a predetermined number of years.

The factors that determine the amount of income you can expect to receive include (but are not limited to) your age, state of health, your postcode, prevailing annuity rates, the type of annuity you buy and the size of your pension fund.

What are the advantages of an annuity?

  • A regular and secure income for life (or a selected term)
  • Can be tailored to meet specific individual needs and circumstances

What are the disadvantages?

  • The income you can obtain will depend on the annuity rates that are in force when you decide to take your pension benefits and it is not possible to predict what they will be or whether they are higher or lower than current rates.
  • Payments cease on death (unless you purchase an annuity which continues to pay income after you have passed away)
  • Once purchased most annuities can’t be undone, making them less flexible than other retirement income options

Depending on your circumstances and requirements, some annuities may be more suitable for you than others. We are here to assist and to ensure that you purchase the annuity that most suits your needs and circumstances.

Important note

If you do decide to buy an annuity upon retirement, you should ensure that you check policies, rates, restrictions, and benefits very carefully, and if necessary seek advice from a financial adviser. Investing in the wrong annuity scheme could cost you a great deal in annual income, so make sure that you look into this subject carefully before you make any commitment.

Company address: Premier Portfolio Financial Services, Churchill House, 120 Bunns Lane, London, NW7 2AS
T: 020 8446 7444 F: 020 8446 5553 Email: enquiries@premierportfolio.co.uk

The levels and bases of taxation are subject to change.

The guidance provided within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK. This site does not confer any form of personalised financial advice. Should you wish to receive specific financial advice please contact us.

Premier Portfolio Financial Services is a trading name of Fairstone Financial Management Ltd. Fairstone Financial Management Ltd is authorised and regulated by the Financial Conduct Authority – FRN 475973. Part of the Fairstone Group. Registered Address: 1 The Bulrushes, Woodstock Way, Boldon Business Park, Tyne and Wear NE35 9PF.

© Copyright 2025 Adviser Pro. All Rights Reserved.

Design and Development by Adviser Pro