Annuity or Fixed Pension
An annuity is a single premium policy issued by a Life Assurance Company where, in return for a lump sum payment now, the Life Assurance Company guarantees to pay a specified level of income for the remainder of your life and/or your spouse’s life.
There are two types of annuity:
- Compulsory Purchase Annuity – is an annuity that is bought from the proceeds of a pension arrangement.
- Purchase Life Annuity – is an annuity that is bought from the proceeds of an individual’s personal funds.
It is very important to get the most competitive quote when buying your annuity as rates vary greatly.
