Purchased Life Annuity

This type of annuity is useful if you need a regular income and have some money to invest. You might want to:

• top-up existing pension income;
• pay for fees such as those for a retirement home;
• get additional income until you receive your pension;
• get a regular income until other investments mature;
• provide income for a child or grandchild at college or university.

If you've a lump-sum to invest from a source such as:

• a sale of a house or shares;
• a tax-free lump sum from a pension fund;
• your savings;
• an inheritance;
• an unexpected windfall;
• a maturing life plan; or
• a redundancy payment,

you can convert this into a guaranteed regular income for life or for a period of your choice between 2 and 20 years.

Other investments can provide a regular income but a Purchased Life Annuity guarantees that your payments will continue as long as you live. You don't need to worry that the money will run out or be affected by changes in the stock market.

Who can have one?

You must be resident in the UK at the time you buy a Purchased Life Annuity and we do have some conditions if the person buying the plan is under 18, but otherwise anyone can buy a Purchased Life Annuity.