Retirement: Lifetime Annuities
With Lifetime Annuities your Money Purchase Pension is converted into an income for the rest of your life – however long you live. You can add other options and get different types depending on your needs and circumstances.
The amount of income an annuity will pay will depend upon a number of things. These include your age, your health and the amount in your pension fund after taking any tax-free cash.
Lifetime annuities and scheme pensions are both types of secure pension, providing individuals with a known amount of regular income, usually for their lifetime.
While there is usually no flexibility to vary the levels of income, market risk and investment decisions are removed.
This contrasts with flexible access pensions where individuals leave their pension invested and take on all of the investment risk but can choose how much of their money to withdraw and when to take it.
Lifetime Annuities don’t have to be purchased from the same company that runs the pension scheme. Individuals may be able to secure a better annuity rate from another company, known as an ‘open market option’.
Lifetime annuities can be used to provide pensions for the original member and/or their survivors. They can also be bought with either ‘uncrystallised funds’ or drawdown funds.
Some individuals may be able to buy an impaired life annuity or an enhanced annuity which will give a higher starting pension due to a lower life expectancy. These are available to individuals with particular medical conditions (such as heart disease or cancer) or lifestyles (for example, smokers).
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investing in shares should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.
Nick Briggs, East Sussex
I absolutely recommend their approach and service
I am very happy with the service that I have received from Pembroke Financial Services on the transfer of my pension from a final salary scheme to a personal pension. I found that Frances was knowledgeable, thorough, and a very clear communicator eliminating jargon. The Pembroke process that was followed including support systems with risk and cash flow analysis allowed a rigorous fact based recommendation about what I needed to do. I absolutely recommend their approach and service.
Yvette Jeal
Appreciate the work done this year in growing my investment
Just wanted to drop you a line to thank you for coming around earlier this week. Appreciate the work you have done this year in growing my investment and it was a helpful conversation in every way!
