{"id":1358,"date":"2015-09-02T16:09:52","date_gmt":"2015-09-02T16:09:52","guid":{"rendered":"http:\/\/www.newsfin.co.uk\/news\/?p=1358"},"modified":"2015-09-02T16:09:52","modified_gmt":"2015-09-02T16:09:52","slug":"lifetime-annuities","status":"publish","type":"post","link":"https:\/\/www.dokanefinancialservices.co.uk\/financialnews\/lifetime-annuities\/","title":{"rendered":"Lifetime annuities"},"content":{"rendered":"

Guaranteeing a regular retirement income for life<\/strong><\/p>\n

A lifetime annuity is a type of retirement income product that you buy with some or all of your pension pot. It guarantees a regular retirement income for life. Lifetime annuity options and features vary \u2013 what is suitable for you will depend on your personal circumstances, your life expectancy and your attitude to risk.<\/p>\n

How a lifetime annuity works<\/strong>
\nYou choose to take up to 25% of your pension pot \u2013 or of the amount you are allocating to buy an annuity \u2013 as a tax-free lump sum. You then use the rest to buy an annuity, which will provide you with a regular income for life.<\/p>\n

This retirement income is taxed as normal income. As a rule of thumb, the older you are when you take out an annuity, the higher the income (annuity rate) you’ll get.<\/p>\n

There are two types of lifetime annuity to choose from:<\/strong>
\n\u2022 Basic lifetime annuities\u00a0\u2013 where you set your income in advance
\n\u2022 Investment-linked annuities\u00a0\u2013 where your income rises and falls in line with investment performance, but will never fall below a guaranteed minimum<\/p>\n

Basic lifetime annuities<\/strong>
\nBasic lifetime annuities offer a range of income options designed to match different personal circumstances and attitude to risk.<\/p>\n

You need to decide whether you want:<\/strong>
\n\u2022 One that provides an income for life for you only \u2013\u00a0a single life annuity, or one that also provides an income for life for a dependant or other nominated beneficiary after you die \u2013 called a\u00a0‘joint-life annuity’
\n\u2022 Payments to continue to a nominated beneficiary for a set number of years (for example, 10 years) from the time the annuity starts in case you die
\nunexpectedly early \u2013 called a\u00a0‘guarantee period’
\n\u2022 ‘Value protection’\u00a0\u2013 less commonly used, but designed to pay your nominated beneficiary the value of the pot used to buy the annuity less income already paid out when you die<\/p>\n

Your choices affect how much income you can get, and where you expect to live when you retire may also affect how much income you get.<\/p>\n

Higher income for medical conditions or unhealthy lifestyle If you have a medical condition, are overweight or smoke, you may be able to get a higher income by opting for an ‘enhanced’ or ‘impaired life’ annuity. Not all providers offer these so be sure to shop around if you think you might benefit from one.<\/p>\n

Remember, a lifetime annuity is just one of several options you have for taking a retirement income.<\/p>\n","protected":false},"excerpt":{"rendered":"

Guaranteeing a regular retirement income for life A lifetime annuity is a type of retirement income product that you buy with some or all of your pension pot. It guarantees a regular retirement income for life. Lifetime annuity options and features vary \u2013 what is suitable for you will depend on your personal circumstances, your… Read more »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.dokanefinancialservices.co.uk\/financialnews\/wp-json\/wp\/v2\/posts\/1358"}],"collection":[{"href":"https:\/\/www.dokanefinancialservices.co.uk\/financialnews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dokanefinancialservices.co.uk\/financialnews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dokanefinancialservices.co.uk\/financialnews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dokanefinancialservices.co.uk\/financialnews\/wp-json\/wp\/v2\/comments?post=1358"}],"version-history":[{"count":0,"href":"https:\/\/www.dokanefinancialservices.co.uk\/financialnews\/wp-json\/wp\/v2\/posts\/1358\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.dokanefinancialservices.co.uk\/financialnews\/wp-json\/wp\/v2\/media?parent=1358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dokanefinancialservices.co.uk\/financialnews\/wp-json\/wp\/v2\/categories?post=1358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dokanefinancialservices.co.uk\/financialnews\/wp-json\/wp\/v2\/tags?post=1358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}