Compare Lifetime Annuity Rates

You can purchase a pension lifetime annuity with all, or some of your pension pot and once it’s payable, it will be paid for the rest of your life, no matter how long you live.

When purchasing a lifetime annuity, you can usually choose to take up to 25% of the pension pot you’re allocating to buy an annuity as a tax-free lump sum, to spend however you like. The annuity you receive from then on will be subject to tax, with the annuity provider normally deducting tax based on your tax code, before paying you the net income.

Your annuity payments can be paid to you on a monthly, quarterly, half-yearly or annual basis, and you can choose to be paid in in advance or in arrears. You will usually receive a higher income if you choose to take your annuity payments in arrears, rather than in advance, and you may also receive more income by choosing to be paid annually in arrears rather than monthly or quarterly.

You can choose to have your income increase annually to keep up with inflation, to increase by a variable amount capped at 5% or by a fixed amount of your choice up to 10%.

You can also tailor your annuity to suit your needs with options available to provide for your loved ones after you die. You can do this by adding value protection or a guarantee period to your annuity. This can provide reassurance that should you die in the initial years after taking out your annuity then your estate could receive either a lump sum payment or your income payment could continue to be paid for your pre-specified number of years. If you have a partner or spouse, you can take out a joint annuity which will provide both of you with a guaranteed income for life.

Adding any of these options will affect the annuity income you receive. It’s important to take the time to consider your needs, and all the options available to meet these, as once purchased you can’t change the annuity. Annuity Ready offers all the lifetime annuity providers available in the open market.