Immediate Vesting Personal Pension Select

If you buy an Immediate Vesting Personal Pension Select (IVPP Select) for £2,880, the tax man makes it up to £3,600. We'll normally pay 25% of the £3,600 as a tax-free lump sum right away – that’s £900.

Then we'll pay you a fixed regular amount every year for the rest of your life. It's as straightforward as that.

Remember that buying an annuity is a long-term decision and once it’s set up, you can't cash it in or make any changes.

It's important to consider your choices carefully. Because once the plan is set up, you can't cash it in or make any changes.

• Can only be bought with a single lump sum payment

• When you die, your pension benefits will stop

• Annuity payments must be set up to be paid yearly in advance

• No option to have increases to income in payment - this means inflation may reduce its purchasing power over the years.

• No option to have spouse’s pension

• Once you’ve bought this plan and the 30 day cancellation period has expired, you can’t change your mind or transfer to another provider

Find out more

Before buying an Immediate Vesting Personal Pension Select you need to be fully aware of the risks and commitments. You should read the Key Features (192kb) and the rest of this section.

Get financial advice

Buying an annuity is a long-term decision. It’s also one you can’t change later, so it’s worth seeking professional advice. You can do this by contacting Standard Life Direct on 0845 272 8810 (call charges may vary) or speak to your financial adviser, there may be a cost for this.

Standard Life Direct is provided by Standard Life Client Management which advises on, and sells products from, subsidiaries of Standard Life plc and some external providers.

IVPP Select does not allow changes once the product has been set up. Please see Benefits and Risks and Limitations tabs for more information.

Eligibility

You can only invest up to £2,880 into an IVPP Select each year

Are you old enough?

You cannot buy an annuity before age 55.

Tax

When you buy your IVPP Select with a cash lump sum of £2,880, we will then add basic-rate tax relief of £720 to that payment. If you're a higher or additional rate tax payer you may be able to claim back more tax relief through your tax return.

Tax relief may be altered and the value to you depends on your financial circumstances.

Apart from the tax-free lump sum, the income you receive from your annuity will be taxed under the Pay as You Earn (PAYE) system.

You can find out more on the HM Revenue & Customs website.

This link is provided for general information purposes only. Standard Life accepts no responsibility for information contained in the site or for the site not being available at all times.

Tax rules and legislation may change. The value of tax relief may change and will depend on your financial circumstances. The information we have given is based on our understanding of law and current HM Revenue & Customs practice as at October 2010.

We include the charges and costs for your annuity when we work out how much income your plan will buy. Once your plan is set up, you won’t pay any other charges.

Our documentation e.g. quote and policy schedule will show these charges.