You'll receive a guaranteed regular income. Once your annuity is set up, the payments aren't affected by the rise and fall of the stock market or interest rates, so you can plan with confidence. Remember that inflation could reduce what you can buy in the future with your income.
Income that lasts a lifetime
Choose the lifetime annuity option and payments will continue until you die. If you're worried about dying soon after buying your annuity you can choose a guarantee period or capital protection, for further information on these options see below.
Income for a fixed period
Buy the annuity for a fixed period and payments will continue until the end of the term you have chosen. If you die before the end of this period, then payments will stop when you die. You can't choose a guarantee period with a fixed term annuity but you can select capital protection.
Flexible options that meet your needs
The income you'll get back depends on how many options you choose. Adding more options reduces the initial level of income you'd get. You can choose from a number of options:
- how often the income is paid - this can be every month, 3 months, 6 months or once a year;
- When your payments will start - you can have them paid in advance so you'd get the first payment as soon as the annuity was set up or in arrears, where the first payment would be made one "payment period" after we set up your annuity. For example, this would be one month later if your payments are to be monthly;
- a single life or joint life plan. On joint life plans you can have the option for the payments to stop when the first person dies (what we call "joint life, first death") or for payments to continue until both people have died ("joint life, last survivor");
- to increase payments automatically up to a maximum of 8.5% each year;
- and, on lifetime annuities, you can have a guarantee period, which means we'll make payments up to the end of the guaranteed term, even if you die before this. The guarantee period can be for as long as you want provided the last guaranteed payment falls before your 90th birthday.
or
- capital protection, which means that if you have not received payments equal to the amount you originally invested before tax, we will return the balance if you die during the term of the plan.
You can't change the options once the plan is set up so think carefully about what you need and get financial advice if you're not sure. There may be a cost for receiving financial advice.
