Looking for retirement income? A pension annuity could be for you.

An annuity is a financial product that provides you with a guaranteed income for life or a fixed period in exchange for a lump sum, usually from your pension savings.

It ensures a stable, predictable income during retirement, helping you manage your finances with confidence.

It’s always important to speak to an expert so they can understand your personal circumstances but here are a some of the most common pension income types:

• Lifetime annuities – a guaranteed pension income for life
• Fixed term annuities – security now and flexibility in the future
• Drawdown – flexible access to your pension savings

The easiest way to apply for an enhanced annuity is to speak to one of our retirement experts. They can gather all the right information from you and complete your “common quotation form”. They can then share this with potential providers.

The common quotation form is used to assess your life expectancy based on your health and lifestyle. It determines the seriousness of your conditions. In some cases, you many need to provide supporting evidence from your doctor, but a medical examination is rarely necessary.

Using this information, your adviser will be able to then shop around to find the most competitive rates for you.

Each year it’s estimated that people “throw away” a total of £1bn in pension income by not shopping around. You don’t have to take the pension offered to you by your provider. Instead, you can take your pension fund to another provider to get a higher rate.

This is called using the “open market option” and it could increase your retirement income by up to 15%*. 

*Which? Buying an Annuity - 2024