Annuities
What are annuities?
If you’re seeking a regular guaranteed income in retirement, an annuity provides you with exactly that.
You can buy a pension annuity to pay a taxable income either for life, or for an agreed number of years.

How does it work?
You may use either some, or all, of your pension savings to purchase a regular and guaranteed income.
There are two main types of income annuities:

1. Single premium immediate annuities
As the name suggests, the income of a single premium immediate annuity begins immediately.
2. Deferred income annuities
The income of a deferred income annuity does not begin for at least 13 months after your last premium payment.
There are a few that factors that determine the amount of income you can expect, and these include (but are not limited to) your age, state of health, your postal code, the common annuity rates, the type of annuity you purchase and the size of your pension fund.
Annuity advantages
There are a few advantages to be gained, including:
A regular, stable and secure income for life
Annuity being tailored to meet your current individual circumstances



Disadvantages
We wouldn’t be the best financial advisors if we didn’t give you information about possible problems. These include:
