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 Pension Annuity

Our Pension Annuity has a guaranteed regular income for life with a choice of payment options. A higher income may be available for those who have certain health and lifestyle conditions or have previously suffered from certain medical conditions. Once purchased your clients cannot change or cash in their Pension Annuity, even if their personal circumstances change.

Easy to buy


  • Clients can use funds from all UK registered pension schemes.
  • No need for a medical to be done, we can quote from a common quote request form.

Great choice


  • Clients choose to receive their income monthly, quarterly, half-yearly or yearly.
  • Income can be at a fixed rate. Or, your client can opt for an annual increase at either a fixed percentage or RPI.
  • We offer the option to pay an income to a surviving dependant when the client dies.
  • Clients can choose guaranteed income payments for a fixed period from the outset, even if they die within this time.
  • We offer a one year guarantee period as standard.
  • Clients can choose at outset to continue their value protection beyond the 90 day cover we offer as standard.

Extra value


  • Sophisticated pricing - to ensure a personalised quote for each client.
  • Higher rates if a covered spouse or dependent has a health condition too.

Age limits

The minimum age your clients can buy this annuity is 55. A younger age may be possible if your client is retiring through ill health or the annuity is being bought for a dependant following the death of a member of a pension scheme (minimum age for recipient is 20).

The maximum age at which we can open this plan for payments from full fund transfers or the Open Market Option is 90.

Term

Income is paid to the retiree as long as they live and, if a dependant’s option is chosen, to that person as long as they live. Your client can choose for the income to be paid for a minimum number of years from the outset. Alternatively, they can protect up to 100% of the fund used to buy the annuity so we will never pay less than this amount in total.

Payment limits

Minimum payment to start this plan is £10,000 after taking tax-free sums and paying adviser charges.
We don’t impose a maximum amount, but for plans valued at over £1,000,000 please contact us directly.

 

Product charges 

There are no extra product charges. All the charges for setting up and running this annuity are taken from the fund and accounted for when setting the income level of the annuity.

 

Adviser charges 

We’re happy to facilitate an adviser charge. This can be a fixed amount or a percentage of the amount used to buy the annuity, with the option of specifying a minimum and/or a maximum amount. 

 

Commission 

1.0% plus uplift or 1.5% plus uplift when clients' plans takes into account health and lifestyle conditions. Rebating in 5% steps is allowed. 

 

We're here to help or you can calls us for a quote


 For more information, call us on 0800 015 4909. Lines are open 8.30am to 5.30pm, Monday to Friday.

 Email us at retirementsupport@aviva.co.uk

Like any financial product, there are benefits and risks involved – please consider them all before recommending our Pension Annuity product to your clients.

 It’s been designed for clients who:


  • Want a guaranteed, life-long income.
  • Want a regular income, at a level they've chosen.
  • Want to access 25% of their pension fund in tax-free cash.
  • Would like the option to see that income increase, year on year, from the outset, either in line with inflation or at a fixed rate.
  • Would like the option to provide a guaranteed, life-long income to a spouse or dependant after their death.
  • Could explore the impact of health and lifestyle factors such as a heart attack, stroke, diabetes, or any other serious medical condition that could affect their, or their dependants’ life expectancy.

It’s unlikely to be suitable for clients who:


  • May want to change the level of their regular income, as circumstances change over time.
  • Don’t understand the impact of inflation, which erodes the purchasing power of this product.
  • Cannot provide medical information that’s supported by a doctor.
  • Belong to a defined benefits company scheme or want to carry on paying money into their current pension scheme.
  • Want greater flexibility over the level of income and are willing to accept the additional risk this may involve.

What do you need to think about?


  • Does your client want more flexibility than this product can offer?
  • How much is their pension fund worth, does their policy have guaranteed annuity options?
  • Do you need to explore your client’s health, or their dependants’ health in more detail?
  • Do your clients understand the implications of fixing an income for the rest of their lives?
  • Does your client understand that the total income received may be less than the amount used to buy the annuity?
  • Does your client realise the importance of accurate medical information, and that we could reduce income to standard rates if a condition isn't supported by a doctor?

Possible alternatives:


  • With Profits Pension Annuity
  • Income drawdown
  • Other Open Market Option

Contact us

You can find contact details for each product area in the drop-down list:

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