Pension Annuity

You can be paid monthly or yearly, either:

• In advance – at the start of the payment period; or
• In arrears – at the end of the payment period.

• Fixed income – take the same amount each year for the rest of your life.
• Increasing income – increase your income by a fixed percentage each year for the rest of your life.
• Inflation-proof – increase your income in line with the retail prices index (RPI) each year for the rest of your life.

The higher the level of increase you choose, the lower your starting level of income will be.

If you’re married or in a registered civil partnership, you can decide whether you want a pension income paid to your current partner ('named'), or paid to your partner at the time of your death ('any').

Choosing 'named' would give you a higher income than ‘any’ but if you choose 'named' and you re-marry, your partner at the time of your death (if different) will not be entitled to a dependant’s pension income.

If you’re not married or in a registered civil partnership when you buy your annuity and you want to provide benefits for your partner when you die, you must name them on your application.

Your pension annuity payments will stop when you die, however you can add a guaranteed payment period to make sure your income continues to be paid for the chosen length of time.

You can choose a term of up to 30 years from the date the annuity starts, with a maximum age at the end of the period of 100. This means that if you're above age 70, the longest period you can choose will need to be lower than 30.

If you die during the Guaranteed Minimum Payment period, your income payments will continue to your estate or nominated beneficiaries at the same level. If you choose this option, your starting level of income will be lower. The longer the period you choose, the lower your income will be.

It may be suitable for you if:

• You want an income payable for your lifetime, including the option for it to increase annually to protect against inflation.
  
  
• You want your dependant to receive an income if you die before they do.
  
  
• You don't want your pension pot to be subject to any investment risk.
  
  
• You or your partner have certain lifestyle health risks, or have been diagnosed with a more serious medical condition(s) in which case your income would be higher.
  
  
• You want to use your Sun Life Financial of Canada Guaranteed Annuity Rate.

It may not be suitable for you if:

• You want to withdraw cash amounts from your plan as and when you choose.
  
  
• You want a maturity payment.
  
  
• You want to change any of the options on the plan once it has started.
  
  
• You want your income to vary depending on investment conditions.