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Helen's story

Index linked annuity - Helen's story

63 years old

Helen has carefully built up her pension pot over the years and is looking to retire soon. She’s looking for an annuity option that will help protect her income from inflation so she can hopefully keep up with the cost of living.

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In a little over a years’ time, Helen will have a She lives comfortably with her partner, but wants to keep her independence, she's worried about what inflation will do to her pension income over the longer term as her family has a history of living to a ripe old age.

When she retires, she’ll take her 25% tax-free lump sum of AMOUNT and is considering putting the rest into an index linked annuity. A level annuity would give her a flat monthly payment of £RESULT, whereas an index linked annuity would start lower at £RESULT, but go up with inflation. So if year on year she could be getting around £000 a month at that time.

This type of annuity can deliver good value for those who live longer after retirement than the norm.

Helen’s figures

Her pension pot

Her tax-free lump sum

Helen’s initial monthly annuity income

Helen is also entitled to the new State Pension of
£155.65 per week

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