A guaranteed income for life.
An annuity provides a guaranteed income in retirement, with the option to provide an income for a spouse or dependant on your death, giving peace of mind and security. Scottish Widows offers both Standard and Enhanced Annuities.
You’re eligible for a Scottish Widows annuity if you:
An annuity may be suitable for you if you:
Many people underestimate how long they will live – a 65 year old man can expect to live to 85*, and a 65 year old woman to age 87*.
(*Source: ONS, December 2021)
If you retire at age 65, your pension pot could need to provide an income for 20 or more years of retirement.
An annuity can provide a guaranteed income for life, regardless of how long you live.
Use this calculator, provided by the Office for National Statistics, to see how long you might live. We recommend you take life expectancy into account when deciding how to provide your retirement income.
There are a number of different types of annuities and most will pay a guaranteed income for life. You also have the option to ensure your dependant would receive an income from your annuity after your death, which would continue for the rest of their life. We offer Standard Annuities and an Enhanced Annuity, which can offer a higher income to those who have health or lifestyle factors which mean they have a lower life expectancy.
With a standard annuity, the income you will receive is largely determined by your age, where you live and interest rates.
An enhanced annuity offers a level of guaranteed income which also takes into account your health and lifestyle. You might get a higher level of income if you have a medical condition or lifestyle that could reduce your life expectancy.
Even if you think you are healthy, if you are a smoker, overweight or taking any medication, you could receive a higher income than a standard annuity.
You can choose to have your income paid monthly, quarterly, half-yearly or yearly which can be made:
Or
Your income can:
You can guarantee your annuity for up to 30 years. If you choose this option, it means the income will continue to be paid even if you die before the specified period is up.
Selecting a guarantee period will provide a slightly lower level of income, but it guarantees that your income continues to be paid for the remainder of the period.
If you’ve chosen a dependant’s income and the dependant is still alive when you die, we will start to pay their income in line with how you set up your annuity.
If you die before age 75, any income paid to a dependant will be paid free of income tax.
If death occurs after age 75, income will be paid to your dependant net of income tax at their marginal rate.
A dependant can be your surviving husband, wife, registered civil partner or other adult dependant.
Any costs for advice and services from a financial adviser can be paid to them from your plan via an adviser payment.
Our charges have been taken into account when we calculated your income.
With annuities you could get a higher income by shopping around.
It’s important to check whether you are eligible for an enhanced annuity, as you could get a higher income based on your health or lifestyle. Medical conditions and lifestyle factors taken into account will generally be the same across providers, although some providers will accept different conditions.
It is likely that each provider will apply a different approach to underwriting health conditions and this could result in a higher or lower income being offered by them.
Other types of annuities with a range of options will be available, however not all pension providers will offer them. You must think carefully about what you want from an annuity as you cannot change your mind once you have bought it.
Other types of annuity include:
Please note, these types of annuity are not available from Scottish Widows.
Our annuities are only available to our existing pension plan customers, unless you apply through a financial adviser.
If you’re an existing pension plan customer, call us.
If you don’t have a financial adviser find one here.
Selecting how to take the right retirement benefits for you is probably one of the most important financial decisions you’ll make in your lifetime.
A financial adviser will be able to help you choose the route which best suits your retirement goals.
Please note: you'll normally be charged for advice or services provided by a financial adviser.
You should shop around before deciding which annuity to buy.
If you give us your permission to share your details, we can also tell you the best available income from all other annuity providers when we give your quote. You’ll be able to see easily if you could get a higher income elsewhere.
If we can't provide the highest annuity income available, we may be able to introduce you to our partner, Hub Financial Solutions, one of the largest annuity brokers in the UK*, who can help you buy an annuity with another provider.
*Source: Hub Financial Solutions 2022
Why not also visit MoneyHelper for advice, tips and tools to help you make the right decision. MoneyHelper is a Government organisation, set up to help you make the most of your money by giving you free, impartial advice.
Whatever stage of the retirement journey you’re at, get the basics before you go any further.
You now have more choices when it comes to taking your pensions and retirement income.
If you need to find a lost pension, you can search on the Government's website.