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Compare our annuities.
| Pension Annuity | Income | With Profits Annuity |
|---|---|---|
| Income will be paid for the rest of the annuitant's life. | How long will pension income be paid? | Income will be paid for the rest of the annuitant's life. |
| Current and future income will be decided in advance based on age, sex, fund size, postcode, prevailing market conditions and the payment options chosen. | How much income will be paid? | Starting income will be based on age, sex, fund size, prevailing market conditions and the payment options chosen (including ABR). Future income will depend on bonuses paid and the chosen ABR. |
| Income won't fall below its starting level. It will remain fixed each year unless increases are chosen. | Can pension income fall from year to year? | Income can go down as well as up but won't fall below a fixed percentage of starting income (depending on the ABR chosen). |
| We may be able to offer enhanced rates if your client has a qualifying lifestyle health risk or medical condition. | Are enhanced rates available? | Enhanced rates aren't currently available. |
| Yes it will be taxed as earned income. | Will pension income be taxed? | Yes it will be taxed as earned income. |
| Pension Annuity | Options | With Profits Annuity |
| Income can increase by a fixed percentage each year (up to 10%) or in line with the Retail Prices Index (RPI). | Can income increase automatically? | No. Increases to income depend on bonuses being higher than the chosen ABR. |
| Yearly increases can help protect the value of income against the effects of inflation. | Can income be protected against inflation? | Bonuses could help protect the value of income against the effects of inflation, but are dependent on investment returns. |
| Income can be paid monthly, quarterly, half-yearly or yearly, with payments made in advance or in arrears. | How regularly can pension income be paid? | Income can be paid monthly, quarterly, half-yearly or yearly, with payments made in advance or in arrears. |
| A guaranteed minimum payment period of up to 10 years can be selected from outset during which time income will continue to be paid, even if the annuitant dies within that period. | Can income be guaranteed for a minimum period? | A guaranteed minimum payment period of up to 10 years can be selected from outset during which time income will continue to be paid, even if the annuitant dies within that period. |
| A pension can be paid to a surviving spouse, registered civil partner or financially dependent partner, up to 100% of the annuitant's pension. | Can a pension be paid to a surviving partner? | A pension can be paid to a surviving spouse, registered civil partner or financially dependent partner, up to 100% of the annuitant's pension. |
| No, once the annuity is in payment, none of the chosen options can be changed. It can't be converted into our With Profits Annuity. | Can the annuity be changed at a later date? | Once the annuity is in payment, only the level of ABR can be changed. It may also be converted to our Pension Annuity. |
| Pension Annuity | Buying | With Profits Annuity |
| Normally a cash lump sum of up to 25% of the pension fund can be taken, free of tax. The rest is then used to buy an annuity. | Can a cash lump sum be taken before buying the annuity? | Normally a cash lump sum of up to 25% of the pension fund can be taken, free of tax. The rest is then used to buy an annuity. |
| The minimum pension fund our Pension Annuity can be bought with is £5,000 (after any cash lump sum has been taken). | What is the minimum pension fund you'll accept? | The minimum pension fund our With Profits Annuity can be bought with is £5,000 (after any cash lump sum has been taken). |
| Yes, contracted-out benefits can be used to buy our Pension Annuity, but some of the payment options maybe mandatory. | Can you accept contracted-out benefits? | No, our With Profits Annuity cannot accept contracted-out benefits. |
| A personal contribution(s) can be made to an Immediate Retirement Personal Pension, which is then used to buy the annuity. | Can other non pension savings be used to buy an annuity? | A personal contribution(s) can be made to an Immediate Retirement Personal Pension, which is then used to buy the annuity. |
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0845 765 4465
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Please note that the key features and terms and conditions should be issued and read together.
Key documents
Pension Annuity key features (W12325)
PDF: 1.54MB
PDF: 1.54MB
With Profits Annuity key features (W12326)
PDF: 1.64MB
PDF: 1.64MB
Terms and conditions (S430)
PDF: 213KB
PDF: 213KB
Application form (S410)
PDF: 842KB
PDF: 842KB
Trustee or administrator form (Q18401)
PDF: 539KB
PDF: 539KB
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Pension Annuity
Offering income certainty for life. Income can be fixed or increasing but will never fall.
With Profits Annuity
Bonuses linked to investment performance could provide a higher overall income than available from our Pension Annuity.
Why choose us?
We’re a long-standing provider of pension annuities, offering standard, enhanced and postcode rates.
Annuities
This website is designed to give professional financial advisers information and tools that they can use to help control and develop their business and should not be relied upon by private investors or any other persons.
© Legal & General Group plc 2012
