You don't have to buy an annuity from your pension provider and it often pays to shop around. Call us for a quote and see how we compare.

Best mainstream annuity provider winner, Moneywise pension awards 2014

Annuities explained.


couple in market

Pension annuities explained

A pension annuity converts the funds built up 
in your pension scheme(s) into a regular income. 
The income is then payable for the rest of your life.

Not all pension schemes automatically 
provide you with an income.

If you're lucky enough to be in a salary related 
(defined benefit) scheme then the chances are 
it will provide you with a pension income.

However, if like the majority of people, you’re in a money purchase (‘defined contribution’ scheme), then you will need to use your pension fund(s) to buy a pension annuity to provide you with your income.

You can normally start taking your pension benefits from age 55.

Current UK pension legislation allows you to start taking your pension benefits from age 55. You don't have to give up work to start receiving your pension income.

You can take a tax-free cash sum.

Before buying your pension annuity, you will normally be entitled to take up to 25% of your pension fund(s) as a tax-free cash sum. The remainder of your fund is then used to buy your annuity. Alternatively, you can use all of your pension fund to buy your annuity.

It pays to shop around.

You don’t necessarily have to buy your pension annuity from your pension provider. Buying your annuity from another provider could increase the income available to you, particularly where your pension provider isn't a specialist annuity provider or doesn't offer enhanced income based on health issues.

The Money Advice Service has annuity comparison tables for the various annuity providers, based on the size of your fund and the annuity payment options you select. This can be useful when deciding which providers you want to request quotes from.


The income you’re offered will be based on a number of factors:

  • the size of your pension fund
  • annuity rates and market conditions when you buy
  • your age and postcode, (if provided)
  • the annuity options you choose
  • the state of your health and certain lifestyle choices.

Your annuity income will be subject to income tax and will depend on your individual circumstances.

Our Pension Annuity.

Our Pension Annuity will provide you with a pension income for the rest of your life that won't fall. We offer extra income for our Pension Annuity where one or more qualifying lifestyle health risks or medical conditions apply. These are our enhanced annuities.

When buying one, you will need to tell us how you would like your income paid and whether you want a proportion of your income to continue to be paid in the event of your death. These are your annuity options.

You could qualify for extra income.

Certain medical and/or lifestyle conditions could qualify you for our enhanced Pension Annuity. The more serious your condition(s), the more income we’re able to offer.

There are a number of potentially qualifying medical conditions.

Help with your decision.

Buying a pension annuity is an important one-off decision and we recommend that you seek financial advice before buying one. To speak to a qualified financial adviser call 08000 481 224, Monday to Friday, 9am to 6pm. Please note they can only advise you on Legal & General's products and we may record and monitor calls. Call charges will vary.

On this website we have tried to provide as much information as we can to help with your decision including a list of frequently asked questions. This should not be seen as an alternative to financial advice.

Contact us and get a quote.

For more information and to get a Pension Annuity quote, please contact us on

0800 048 0302

We may record and monitor calls. Call charges will vary.


Call us for a quote

0800 048 0302


Monday to Friday, 9am to 5pm

We may record and monitor calls. Call charges will vary.

 

annuitysolutions@landg.com

Gentleman

Annuity Calculator

See how much income we could offer you using our annuity calculator.

Your recently viewed items...

You need javascript enabled for us to remember your Recently Viewed Items.

You might also be interested in...

Pension Annuity

Our Pension Annuity helps you to plan for your future with the certainty that your income will never fall.

Extra income for health risks

We could offer you extra income from our Pension Annuity if common health risks like smoking or being overweight apply.

Extra income for medical conditions

We could offer you extra income from our Pension Annuity if you suffer or have previously suffered from one or more qualifying medical conditions.