FAQs

Making the right choice depends on a number of factors, including whether you have a spouse, civil partner or dependants; your attitude to risk; and your health.

Remember, you don't have to decide until you are approaching the age you want to start to convert your pension fund into an income. You should certainly consider consulting a Financial Adviser.

Yes. Currently, you can decide to buy an annuity any time between 50 and 75, even if you’re still working. From 6 April 2010, the Government has increased the minimum age from 50 to 55.

Conventional annuities carry no separate charges. You can compare the value for money offered by different providers simply by looking at the income you might get for your pension fund.

Unitised annuities incur certain charges in return for setting up and servicing your annuity plan throughout your retirement - as well as offering you professional investment management of your money. These will be clearly shown in your Personal Illustration.

You can choose to have your pension income paid:

• monthly
• quarterly
• half-yearly
• yearly
• in advance or arrear

Regular payments will be made direct to your bank or building society through the Bankers Automated Clearing services Ltd. (BACS) system.

We deduct income tax from your annuity payment on your behalf. Your Tax Office sends us your tax code number, and tells us how much tax to deduct (taking into account your personal allowances). At the end of the tax year you'll get a P60 showing your pension and the tax taken off. You should keep this in case you have to fill in a tax return or need to claim tax back from HM Revenue & Customs. Tax rules can change.

On average, female pensioners are expected to live longer than male pensioners. This is reflected in the differing amount of pension income paid to males and females who are the same age at retirement and who have the same pension fund. Further information.