Pension Annuity

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Compare pension annuity options today

Lines are open Mon – Fri 9am to 8pm, excluding bank holidays. Calls may be monitored and recorded.
The Age UK Annuity Service is provided by Just Retirement Solutions Limited.

Discover if you could boost your retirement income by up to 40%* by shopping around for the best annuity rate, guaranteed for life.

If you are looking for a secure retirement income that’s guaranteed for life, it’s important to shop around and compare annuity rates from a range of providers. You should make sure you are getting the best possible annuity income for you.

48% of people could get a higher income by shopping around**
FCA Market Study | December 2014

Age UK Annuity service offers:

  • A free service – there is no charge for using the Age UK Annuity Service, whether you complete the online form or call our dedicated support team.
  • Access to your 25% tax-free cash, as a one-off lump sum at the outset.
  • Choice - obtain quotes from 9 annuity providers, including Aviva, Canada Life, Just Retirement Limited, LV=, Prudential and Standard Life.
  • Includes health and lifestyle questions to ensure that you receive enhanced annuity quotes which, if you qualify, could increase your retirement income by up to 40%*.
  • Nationwide service with UK based staff.

Why compare annuities with the Age UK Annuity Service?

If you have decided that you’d like to use your pension pot to buy a guaranteed income for life, it’s important that you compare annuity rates to make sure you secure the highest lifetime annuity, as you only have one opportunity to do so – once you are committed to a provider and started to receive an income the decision can’t be reversed.

Speak to one of Just Retirement Solutions annuity coordinators today who will take you through the process, step-by-step and help you find and shape an annuity to meet your needs.  Alternatively, you can use the online planner to compare annuities 24/7.

How the Age UK Annuity Service works

1. Complete the online annuity planner, or call our dedicated support team

In order to provide your personalised quotations, you will need to provide us with a range of information including your contact details, the value of your pension fund(s), as well as answer some health and lifestyle questions.

These health and lifestyle questions enable us to identify if you could be entitled to an enhanced annuity which can generate a higher income of up to 40%*. Even minor ‘medical conditions’ such as high blood pressure, high cholesterol levels or being a smoker could give you an increased annual income.

Retirement is the one time when your medical and lifestyle situation could actually improve your lifetime income.

2. Receive your quotes

Once you have provided us with your details, you will receive quotes from a range of annuity providers. The quotes are illustrated in a simple to understand table displaying the annual income you will receive from each provider, shown in order of highest income first.

We compare quotes from 9 annuity providers, including Aviva, Canada Life, Just Retirement Limited, LV=, Prudential and Standard Life.

3. Compare and choose an annuity

Compare the quotes you receive through the Age UK Annuity Service to the quote you’ve received from your existing provider.

If you have been quoted a better annuity rate from your existing provider, great. If using the Age UK Annuity Service can get you more, then even better. There is no fee for using the Age UK Annuity Service.

If you would prefer to receive some advice on your decision then Just Retirement Solutions can put you in touch with an expert, which is likely to incur a fee.

4.Buying a guaranteed income for life

If you decide to accept one of the quotes you receive using the service, you can apply straightaway by clicking “Request application pack” online or asking your annuity coordinator to send you an application form to complete.

Just Retirement Solutions will guide you through the information you’ll need to provide and will liaise with your pension provider to make sure you receive your retirement income promptly.

You could start receiving your retirement income in as little as 25 days from application.

Advantages and disadvantages of Annuities

      Advantages

  • You know what income you will be receiving for the rest of your life.
  • You can usually take up to 25% of your pension pot as tax-free cash (now known as the Pension Commencement Lump Sum) before you purchase the annuity.
  • Consider enhanced annuities which take your health and lifestyle into account when determining the income you will be paid.
  • You have the security of knowing that you will never spend all your pension savings and you will always have an income.
  • Depending on your personal circumstances, there are a number of options you may wish to include when you take out your annuity, including:
    • Income for loved ones; providing for others, such as your spouse or dependants.
    • Value protection; returns a lump sum to your beneficiaries if you die without having received the full value of your pension fund.
    • Protection against inflation; you can choose to increase your annuity income in line with inflation.
    • Guarantee period; this ensures your annuity will be paid for the duration of the guarantee period, even if you die early.

    • Disadvantages
  • Once you have secured your conventional annuity you cannot change it, even if your personal circumstances change or inflation (the cost of living) rises steeply.
  • If you die relatively soon after taking out the annuity, the money used to fund its purchase cannot be returned, even if you have only received a fraction back from the annuity provider as income payments. You can choose to protect against this happening but it will mean having a smaller income from the outset.
  • If you haven't considered applying for an enhanced annuity, you might be losing out on income.
  • The income you receive is dependent upon annuity rates at the time of purchase.
  • By choosing to include annuity options, such as those listed in the advantages section, it will usually mean you receive a lower inital income.
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Further options

What are the other options available with the new pension freedoms?

You have a number of options for using your pension pot(s) to generate a retirement income under new flexible rules that came into effect from April 2015.

As part of the changes, Pension Wise (a free and impartial service backed by government) is providing free, impartial guidance to help you understand the choices you have for using your pension pot and how they work.

Your options for your pension pot include:

  • Leaving it untouched.
  • Using it to buy a guaranteed income for life (an annuity).
  • Using it to provide a flexible retirement income.
  • Take small cash sums.
  • Take your whole pot as cash.
  • A mix of the above. 
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    Whichever retirement income option you are considering, your first step should be to make the most of the free guidance to which you are entitled through Pension Wise. This will give you a clearer understanding of which options may be right for you and make you aware of any tax implications.

FAQ

Here are some of the most frequently asked questions and answers concerning annuities.
Q. Do I have to use all my pension to buy an annuity?
Q. What are the benefits of taking out an annuity sooner rather than later?
Q. What is the open market option?
Q. What is an "enhanced" annuity?
Q. Will my partner get any money from my annuity when I die?

 

Q. Do I have to use all my pension to buy an annuity?
A. No. You are normally able to take up to 25% of your pension fund as tax-free cash. In addition to the 25% tax-free cash, you can take some, or all, of your remaining pension pot as a lump sum (however, please note this will be subject to tax).

Q. What are the benefits of taking out an annuity sooner rather than later?
A. By taking out an annuity you will enjoy a guaranteed regular income until you die that can enable you to plan with certainty and spare you from having to monitor the progress of your pension fund and make ongoing investment decisions.

Q. What is the open market option?
A. The ‘open market option’ entitles you to shop around the market for the most suitable annuity income at the point at which you decide to use your pension fund to buy an annuity. Using the open market option could secure you a higher income than the annuity offered by your pension provider and, if you have or have had health problems and qualify for an enhanced annuity, you could secure a much higher income still.

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Q. What is an "enhanced" annuity?
A. Enhanced annuities, offered by certain specialist providers, are a guaranteed income for life, provide an income boost to those with mild health problems such as high blood pressure and cholesterol, and to smokers and others with more severe health or health-related conditions, such as cancer.

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Q. Will my partner get any money from my annuity when I die?
A. A lifetime annuity pays you a regular income for the rest of your life but once you die your payments will ordinarily stop. However, you can choose to add options (listed in the advantages and disadvantages section above) to ensure a loved one continues to benefit from an income from your annuity after you have passed away.

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Find out more information

Get a quote today

03332 209 471^

Lines are open: Mon - Fri 9am to 8pm. Calls may be recorded
The Age UK Annuity Service is provided by Just Retirement Solutions Limited.

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Find out more about the Age UK Annuity Service

* Source date: 16/03/2015. 40% is achieved by comparing the lowest standard annuity rate against the best enhanced rate for a person who was diagnosed with stage 2 bowel cancer, 2 years ago and had surgery, chemotherapy and radiotherapy. Quotes are based on a RH2 7RT postcode, for a 65 year old individual with a pension pot of £25,000 with a 5 year guaranteed period, no escalation and no value protection, which have been obtained from a representative sample of providers via Just Retirement Solutions Limited. The comparison is based on rates available via the open market option only and it should be noted that smaller increases will be achieved for less serious medical or lifestyle conditions.

**Financial Conduct Authority Market Study, December 2014

Age UK Annuity Service is provided by Just Retirement Solutions Limited.

Registered office: Vale House, Roebuck Close, Bancroft Road, Reigate, Surrey RH2 7RU. Registered in England Number 05125701. Just Retirement Solutions Limited is authorised and regulated by the Financial Conduct Authority.

^ Calls to 03 numbers cost no more than a national rate call to an 01 or 02 number and must count towards any inclusive minutes in the same way as 01 and 02 calls. These rules apply to calls from any type of line including mobile, BT, other fixed line or payphone. Calls may be monitored or recorded for training purposes.

 Age UK Enterprises Limited is the commercial arm of Age UK (charity no.1128267) and donates its net profits to that charity. Age UK Enterprises Limited is registered in England and Wales no.3156159. Registered address: Tavis House 1-6 Tavistock Square, London WC1H 9NA.

 Age UK Enterprises Limited is authorised and regulated by the Financial Conduct Authority to introduce potential annuity customers.

 Promoter: Age UK Enterprises Limited, Tavis House 1-6 Tavistock Square, London WC1H 9NA. Registered in England and Wales number 3156159.

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