Annuities explained

Historically, most people saved into their pension over their working life to provide a pot of money which could be used to buy them a guaranteed income for the rest of their life. Buying an annuity was the most common way for people to take their retirement benefits before rules were changed in 2015 to allow people to access money directly from their pension pot.

Annuities normally pay a guaranteed income for the rest of your life. Some annuities continue to provide an income to a spouse or civil partner after the original policyholder dies.  You can find out what benefits your annuity could pay in your original policy document.

You may have seen in the news that the government has decided to cancel plans to allow people to sell their annuity for a cash lump sum (sometimes referred to as the Secondary Annuity Market).

This means that the original terms and conditions of your annuity remain in force and you won’t be able to sell it for a cash lump sum. The main reason the government has cancelled the plans is that they feel it isn’t possible to create a competitive market that provides value for customers and meets the need for consumer protection.

If you’d like further information on the government’s decision you can visit www.gov.uk/government/news/government-cancels-plans-to-create-a-market-for-secondary-annuities.

Interested in using your pension pot to buy an annuity?

If you don’t already have an annuity but have reviewed your options and decided you want a guaranteed income for life, you can get a quote here

Related documents

Use the drop down below to get the documents and help you need

Fund prices

Money paid into the policy buys units in one or more investment funds. The value of these units can go up or down in line with the investments that make up the fund, affecting the final value when money is taken.

The easiest way to start searching for fund information is to look at your most recent annual statement and type in the name of one of your funds into the search box below. From this we’ll be able to show you funds that are only available to customers from your original policy provider and your fund type.

Please note that not all funds will be available for your particular policy, so you should look at your policy documents to find out what you can invest in. Remember if you look at the total charges for any of the funds, you may also have product charges too. You can find out about these from your policy documents.

The majority of our prices are shown online in pence (GBX) apart from former Alico funds which are shown in pounds (GBP).

The value of the units is not guaranteed and can go down as well as up.

Useful documents

Click here to access useful documents for ReAssure funds

Important information

The information made available on Morningstar’s tool is taken from a variety of sources and is for general information purposes only. The information has not been tailored to your particular circumstances and does not constitute a personal recommendation or financial advice.

If you need assistance in reviewing your investments, you should speak to a Financial Adviser. You can find a Financial Adviser in your area at unbiased.co.uk.

You should also read Morningstar’s general disclaimer here

Money paid into a policy is invested in a with-profits fund, together with the savings of other policyholders.  Bonuses may be declared by ReAssure and added to the policy, depending on how the investments in the with-profits fund perform.

There are three with-profits funds that ReAssure customers are invested in:

  • The Guardian Assurance With-Profit Fund
  • The National Mutual With-Profit Fund
  • The Windsor Life With-Profit Fund

If you’re not sure which with-profits fund you’re invested in, you should look at your most recent annual statement or bonus notice.

Guardian Assurance
With-Profit Fund

National Mutual
With-Profit Fund

Windsor Life
With-Profit Fund

How do I make a claim on an annuity?

If the policyholder of an annuity has died and you think that there may be further benefits available to dependents, please call us and we’ll put you in touch with one of our claims handlers to help you start your claim.