A guaranteed income offers you certainty. You’ll have an income for the period you’ve specified — even for the rest of your life, if that’s what you want. But it’s important to remember there are other factors to think about before you make the commitment:
Shop around
Once you’ve bought a guaranteed income you can’t change your mind, so it’s important to shop around to make sure you get the right product. Remember you don’t have to buy from your current provider — in fact, we strongly recommend that you look at what different providers have to offer to see if you could get a higher income elsewhere. We can help you to shop around and find the best income option for your needs.
We also recommend taking advice from an independent financial adviser, or having free and impartial guidance with Pension Wise at MoneyHelper the UK government’s free money advice service.
Check your pension plan
Start by checking your existing pension plan to see if it has any special features. For example, it might have a guaranteed annuity rate that’s higher than the market rate when you access your savings. In which case, you’ll get a larger income if you stay with your existing provider.
If you have more than one pension plan, you might want to think about combining them into one guaranteed income. Some providers could offer a higher income for a purchase from one large pot than they would for separate purchases from smaller pots.
Your family or dependants
If you want your guaranteed income to benefit family or dependants after your death, you’ll need a joint life product. A single life product stops paying out when you die.
How much could you get?
If you have a defined contribution pension, our pensions calculator will help you estimate the future value of your pension savings and how much income you might be able to get from an annuity. You’ll need information about your pension policy and savings to use the tool.
Types of guaranteed income
Get a guaranteed income (annuity): next steps
Please contact us. We can help you to shop around and find the best income option for your needs
To access your pension savings, you’ll need your retirement pack from us. It shows your up to date pension policy information and the options available to you. If you don’t already have your pack, you can ask for it using our online request form.