You can buy an annuity with the money you have saved in your pension.
You'll normally also have the option to receive a tax-free lump sum of up to 25% of your pension pot.
A guaranteed income to suit youYou can build in options to help you find a retirement solution that’s right for you. Choosing more options will reduce your income.
Here are some of the options:
Provide for your spouseYou can guarantee your spouse an income if you die before them.
An income that competes with rises in the cost of livingYour income will increase each year by a fixed percentage. This can be up to 8.5% a year normally. We also offer annuities which move in line with the Retail Price Index.
Guaranteed payments for a set period of timeIf you die within that time, payments will continue to the end of the guarantee period.
Remember, building in more options will reduce your income.
Other things you can do:
Shop aroundRemember that you don't have to buy your annuity from your current pension provider. You can shop around. This could improve your retirement income as annuity options and rates may vary between providers. Visit the Money Advice Service website for a free and independent guide to shopping around for your annuity.
To apply call 0345 279 8897
Call charges will vary.
Not an existing customer?You can buy your annuity from us, even if you have a pension plan elsewhere. You also have the choice to take your tax-free lump sum from the existing provider and use the remainder of your pension pot to buy an annuity from us. Or you can set up a pension with us and then buy an annuity.
You can choose a Standard Life annuity if:
- any tax-free lump sum you want to take has already been paid to you
- the money being used is from a registered pension scheme
- the rules of your pension plan allow this kind of purchase
- you’re over 55. There are exceptions that allow some pensions to be paid before age 55.
If your pension is already invested with us, there are no minimum or maximum limits on the pension pot value. If your pension plan is with another provider, the minimum amount is £5,000 and the maximum is £500,000.
Pension pot value more than £30,000?
Our Self Invested Personal Pension could offer you more flexible income options.
The income you receive will be taxed under the Pay as You Earn (PAYE) system.
You can find out more on the HM Revenue & Customs website.
Laws and tax rules may change in the future. The information here is based on our understanding in October 2014. Your personal circumstances also have an impact on tax treatment.