Put simply an annuity is a series of payments made at selected intervals in return for a pension fund. The level of these payments will depend upon many factors including the annuity rate, the size of the fund and the age of the individual. Annuity rates tend to mirror the interest rates.
Once you purchase annuity it cannot be changed so you'll want to understand the options before making a decision. Please call us today on 0844 417 9517 to find out more.
Annuity payments are taxed at source under the PAYE system and payments can be made in advance or in arrears on a monthly, quarterly or annual basis.
The advantages of annuity schemes include:
- Guaranteed income for life - plus option to generate income for spouse or beneficiaries following your death
- Tax free cash available at outset
- All charges are made at outset
- Easy to understand contract plus minimal paperwork
The main disadvantage of annuities is that the income level is fixed and cannot be altered to reflect a change in personal circumstances.
If you are not sure about your pension and the benefits of lifetime annuity why not give us a call today on 0844 417 9517 and our customer service team will arrange for a qualified adviser to call you back at a convenient time.
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