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

Download Forms

To give you the right options please select your original policy provider below

Fund prices

You can find out more about funds here

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.