lifetime annuity guarantees you a set incomefor your whole retirement. It’s the simplest and most popular retirement income product on the market.
How it works
Purchased using your pension fund, you’ll secure a level income for the rest of your life. This fixed income takes all the guesswork out of retirement.
While this may seem troubling when you consider the cost of living tends to increase over time, it’s worth remembering most people’s spending needs reduce the older they get. Having more money at the start of retirement allows you to enjoy your free time even more.
Benefits of a Lifetime Annuity include:
- Straightforward and easy to understand – one standard income for life
- Minimal risk
- Higher income from the outset than most other annuity products
What’s the catch?
Restrictions on a lifetime annuity include:
- There’s no adjustment for inflation
- Policy ends when you die – even if you’ve only just purchased the annuity
- You’re unable to pass any remaining income to a beneficiary
Depending on your circumstances these restrictions could mean an alternative product is a better choice.
Annuities are the most popular retirement product for a reason. They provide security and peace of mind by guaranteeing you’ll never be left without an income.
Our free annuity calculator is one of the only ways you can get a live annuity quote online. In just five minutes you’ll know exactly what you’ll get in retirement.