The Financial Conduct Authority (FCA) and the Association of British Insurers (ABI) strongly recommend that everyone should search the open market to find the best annuity rate. The Annuity Information Service can provide you free quotations, without obligation.
The Annuity Information Service and its partners work closely with professional organisations throughout the financial services industry to ensure people have all of the information they need when buying an annuity.
Enter the name of the company with whom you have built up your pension.
If you have more than one pension provider, please select 'More than one' as you can combine your pension pots to purchase one annuity.
Enter the value of your pension fund before any tax free cash is deducted.
Enter your post code.
Where you live has an effect on your annuity rate and your post code is needed to give you a personal quotation.
"We are so pleased that we contacted The Annuity Information Service. We were given all the information we needed, made our own choice and got a much higher annuity."
- Caroline & Jim McDougall
A conventional annuity, also known as a lifetime annuity, pays a known and guaranteed income for the rest of your life.
This income is paid by your chosen insurance company in exchange for the capital that you have built up in your pension fund.
The level of income you receive is based on the size of your pension fund, your age, and the annuity options you choose at the outset.
You may be entitled to an enhanced annuity if you have certain medical conditions or have a particular lifestyle (i.e. you smoke). Please refer to “Enhanced Annuities” for more information.
An enhanced, or impaired, annuity is a type of conventional annuity, where your health and lifestyle entitles you to a higher income.
As with a conventional annuity, an enhanced annuity pays a known and guaranteed income for the rest of your life. This income is paid by your chosen insurance company in exchange for the capital that you have built up in your pension fund.
The level of income you receive is based on the size of your pension fund, your age, the annuity options you choose at the outset, your health and your lifestyle.
Individuals who take prescribed medication, have or have had known medical conditions could qualify for a higher annuity rate due to what many insurance companies perceive as a shortened life expectancy.
Some relevant health conditions include, but are not limited to:
You could also quality for an enhanced annuity due to certain lifestyle factors i.e. if you are a smoker or are severely overweight. Having worked in certain occupations or living in certain areas of the country could also qualify you for a higher annuity rate.
Fixed term annuities provide a guaranteed level of income, for a specified time period e.g. five years.
At the end of the specified term you receive a guaranteed maturity sum. This amount is known and fixed at the outset. It cannot go up or down and is not dependent on stock market performance.
You can use your guaranteed maturity sum to reinvest in another pension product or purchase an annuity at that time.
You can choose the level of income that you wish to receive, within Government limits, although the higher the income you select, the lower your guaranteed maturity sum will be.
Fixed term annuities may be a useful option if you anticipate that your personal circumstances or income needs may change later on in retirement. If your health deteriorates you may even qualify for an enhanced or impaired annuity at the end of the term.
Investment linked annuities, also known as with profits annuities, differ from conventional annuities in that your pension fund is put into investments, such as stocks and shares, to provide the opportunity for potential growth.
There are two types of investment linked annuities:
N.B. We only provide quotations on with profits annuities. If you are interested in unit linked annuities, we recommend that you contact an Independent Financial Adviser.
The amount of income you receive each year depends on the performance of the provider’s with profits fund for each 12 month period and are then adjusted each policy anniversary to take into account the actual declared bonuses. This means that the annuity amount can go up or down depending on the performance of the fund.
Investment linked annuities tend to have higher charges than conventional or enhanced annuities. Any charges, including administration and investment costs, are taken into account when setting the annuity rate and before calculating your starting income. Details of these charges are shown on your full quotation.