|To have the income paid to someone else after you pass away?
||You can guarantee an income to your spouse, civil partner, or a dependant for the rest of their life.
|Your income to increase annually with inflation?
||You can decide whether your annuity will pay a fixed income (which will decrease your purchasing power over time due to inflation), or one that increases annually to protect you against inflation.
|To take a lump sum?
||Usually you have the option to take up to 25% as a tax-free ‘lump sum’; the rest is taxed at your marginal rate. Alternatively you can add this sum to your annuity to provide a bigger income for life.
|To receive your income: monthly, quarterly, half-yearly or yearly?
||You choose the timings of your payments; monthly, quarterly, half-yearly or yearly. You can also choose when the money goes into your bank account – at the start (in advance) or the end (in arrears) of each period. Being paid ‘in arrears’ will give you the highest income, whereas ‘in advance’ will provide the lowest.
|Payments to continue for a specific number of years even if you pass away?
||You can guarantee how long your annuity income will continue to be paid if you pass away sooner than expected.
|To protect a percentage of your pot in case you die earlier than expected?
||You can choose this option to return a lump sum to your beneficiaries if you were to pass away without having received the full value of your pension pot.
|To benefit from enhanced annuity rates due to reduced life expectancy?
||You can get higher rates if you have a reduced life expectancy due to a health condition or lifestyle choices.