What is an Annuity?

An annuity, also called a purchased life annuity
is the name given to the regular income paid from an insurance contract for the rest of your life. Annuities are guaranteed and therefore offer you a secure way of providing an income for the rest of your life.

The value of the investment can go down as well as up and you may not get back as much as you put in.

The amount of income you receive from an annuity is dependent on your age, sex, health, lifestyle and the size of the pension fund or savings used to buy the annuity.

Listed below are some of the different types of annuities:

  • Lifetime annuities
  • Level or escalating annuities
  • Impaired life and enhanced annuities
  • With profit annuities
  • Investment linked annuities
  • Fixed period annuities
  • Flexible drawdown annuities
  • Value protected annuities


If you are planning for your retirement why not contact us so that we can advise and help you make the most of your future income.

Annuity rates are typically affected by:

  • The provider you choose
  • Life expectancy
  • Annuity rates at the time of purchase
  • Your age
  • Your health
  • The type of annuity you choose and any extras you choose to build into your annuity, such as index-linking, guarantees and survivor’s pension

Once you’ve bought an annuity there’s no going back, so you’ve got to get it right first time. As there are so many options to an annuity, we would always recommend that you seek financial advice before purchasing. Why not give us a call today and speak to us without obligation.

Please don’t hesitate to call with any questions regarding Life Annuities or send a message via our short contact form