What is a Pension Annuity?

Giving you a guaranteed income for life

Our Pension Annuity pays you a regular income for as long as you live. You'll know exactly how much you're getting, come rain or shine.

When you retire, one of the most important decisions you'll need to make is how to secure enough income to live out the rest of your life in comfort.

One option is to convert the pension pot you've built up into a regular income. You can do this by buying what is called a pension annuity or an 'annuity'.

  • An income for life

    No matter how long your retirement, the income from your Pension Annuity will provide an income for life. It's worry-free.
  • A fixed or increasing income

    You can choose a fixed income that always stays the same or set your income to increase every year to help you keep up with inflation. It can increase by a set percentage or in line with the Retail Price Index (RPI). It’s worth remembering that the higher the increase you choose, the lower your starting income will be.

  • Payment options

    You can choose monthly or yearly payments and you can select to be paid at the start (in advance) or at the end (in arrears) of the month or year you’ve selected.

  • Options to support your dependants

    You can continue to have your payments paid to a loved one after you die by choosing either 50%, 67% or 100% of your income.

  • Guaranteed minimum payment period

    You can guarantee to have your income paid for a certain amount of time – up to 30 years – once your annuity starts. If you die during this time, we’ll continue to pay your income to anyone you choose until the end of this period.

  • Choose to protect all or part of the amount used to buy your annuity.

    When you die we'll pay a lump sum for the amount protected, minus any income payments already made. You can protect 25%, 50%, 75% or 100% of the original amount used to buy your annuity.

    Full details on these features are in the Key Features document

    The options you choose will affect the amount of income you receive.

  • Am I eligible?

    You must be aged 55 or over and have at least £5,000 to buy an annuity from your pension pot or drawdown plan, after you’ve taken your tax-free cash.

  • I want an income for life

    If you value certainty that your income will last you throughout later life, this product may be for you.

  • I need to support my dependant(s)

    If you want to pass some income to a loved one when you die, this product may be for you.

  • I want security from risks

    Your income is guaranteed and is not affected by the performance of the investment markets or economy. It is guaranteed for life.

  • I have some health risks

    If you have any medical conditions or lifestyle risks then you could get a higher income, with an ‘enhanced annuity’. When getting a quote online there is a section to capture these details. This also applies to your partner and could mean you receive a higher income.

  • Once agreed, it can't be changed

    You'll need to be certain of the choices you make - there's no going back once the cancellation period ends and your Pension Annuity has started.

  • No cash-in value

    The Pension Annuity can’t be cashed in or surrendered.

  • Your income is taxable

    Income above your personal allowance is taxable. It may also affect any means-tested benefits you might receive.

  • You may get back less than you paid

    Depending on how long you live and the options you choose, you may receive less in income payments, than the amount of the pension pot you used to buy the Pension Annuity.

  • Health details matter

    When providing your information it’s important to share accurate personal health information with us, as this may help provide you with a higher income. We may ask for a report from your doctor to confirm information you've given us. Your income may be changed if we find the report doesn't match your application.

When you purchase an annuity with us, we aim to make the process simple, clear and jargon free. It can take as little as 15 minutes to get a personalised quote with us. You can save your quotes and come back later once you've shopped around. You can also complete your application online.

Here’s a summary of the process you’ll follow if you quote and apply for our annuity online.


  • Before you start

    We’ll run through some questions and considerations to make sure you’re ready to get a quote online.

  • About you and your pension pot

    We’ll ask some details about you and about any pensions you’d like to use to get a quote. We’ll also ask if you’d like to include your partner on any quotes.

  • Health and lifestyle (Enhanced Annuity)

    If you chose to get a quote for our Pension Annuity we’ll ask you about your health and lifestyle. If you have a health or lifestyle condition, we might be able to pay you a higher income (known as an Enhanced Annuity).

  • Get multiple quotes

    You'll be able to select different options to see what income you could get and create multiple quotes to compare what these look like. Unless we tell you otherwise, the quote you choose is guaranteed for 45 days.

  • Compare annuity incomes

    We can tell you if our Pension Annuity is best quote available, or if you could get a higher income by shopping around, by carrying out a confidential and anonymous market comparison for you. If we find better deals available for you, you also have the option of seeing who is offering this by visiting our partner website Annuity Ready.

  • Shop around

    It's important to shop around and get as much guidance and advice as you need before you make any decisions.

  • Buying an annuity

    When you’re ready you can apply online for the product using the guaranteed quote you saved previously.

Ready for a personalised quote?

If you know what you want and have your paperwork to hand, it only takes about 15 minutes to get an online quote.

Common questions



Cash-Out Retirement Plan

Now that you’ve learnt more about our Pension Annuity, why not look at other product available as part of your shopping around. Other providers may have more appropriate products or be able to offer a higher level of retirement income.

Man on laptop

Need some help?

Making well-informed decisions about financing your retirement is important so it’s worth shopping around and using available guidance and advice, before you buy. Other providers may have more appropriate products or be able to offer a higher level of retirement income.

Retirement guidance

Pension Wise from MoneyHelper

You can get guidance from the government's free and impartial service to help make your money and pension choices clearer.

The availability of appointments can vary between a few days and several weeks, so if you need guidance, it's a good idea to book an appointment slot now:

0800 011 3797
9am to 5pm, Monday to Friday.
Calls may be recorded or monitored. 

Speak with us

Our colleagues are always happy to help with your questions or to help you apply for a quote.


Get advice

Financial advisers can give you professional advice for pension planning.

You usually need to pay for their service and in return they recommend how to make the most of your pension given your circumstances.

To find and compare financial advisers please visit their website below.