
Retirement: Lifetime Annuities
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).
Exceeded any expectations we had
I received very prompt, easy to understand information with reference to my position as Power of Attorney for my Downs Syndrome brother regarding a query to transfer his pension to a ‘Drawdown Pension’ to allow funds to be accessed, above and beyond his regular payments, for private health care if government care is insufficient. I received a detailed email laying out important points to consider and suggestions to contact official bodies to acquire clarification. David provided a level of service which exceeded any expectations we had, given our other dealings with financial advisers, and my family and I are extremely grateful.
Thanks again for your time and patience
Thank you very much, Keith, and thanks again for your time and patience today. Jack and I thoroughly enjoyed our visit – and that’s not something that is said when visiting most financial institutions!