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  With Profits Pension Annuity

Our With Profits Pension Annuity provides a regular income for life. The income is linked to the performance of our With Profit Fund, so your client’s income has the potential to vary up or down, but will never go below the guaranteed minimum level.

Easy to buy


  • Your clients can buy this product with funds from all UK registered pension schemes.
  • Simple to understand, the product follows the performance of our With Profit Fund.

Great choice


  • An option to change the Anticipated Bonus Rate (ABR) or convert to a conventional annuity at any time after the first anniversary.
  • Range of options can help you to tailor it to individual client requirements.
  • The option for paying income to a dependant when your client dies.

First rate guarantees


  • A guaranteed minimum level of income, for the rest of your client’s life.
  • Clients can choose guaranteed income payments for a fixed period from the outset, even if they die within this time.
  • Once a regular bonus is added it can't be reduced or removed, so the maximum amount your clients' income can fall by in any year is their chosen ABR.
  • Clients’ income won’t change more than once a year.

Age limits

The minimum age your clients can buy this annuity is 55. It may be possible to buy this at a younger age 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. Or until conversion to a Pension Annuity.

Payment limits

Minimum payment to start this plan is £20,000 after taking tax-free sums and paying adviser charges. We impose a maximum amount of £1,000,000 on this plan.

Anticipated Bonus Rate

Your clients can choose a rate between 0 and 5%, in 0.25% steps.

Guarantee Period Option

We offer a guarantee period of up to 10 years. If your client dies after 90 days but within the guarantee period, we’ll carry on making annuity payments to the estate or dependant until the end of that period. This does not apply if the annuity was purchased by the trustees of a defined benefit pension scheme.

Product charges

When we work out the bonuses, we take 0.7% of the plan value to allow for our expenses. These expenses include administration costs, investment costs, and any gap in projected life expectancy of our With Profits Pension Annuity plan holders.

We may take an extra annual charge from asset share towards the cost of these guarantees. This charge is reviewed at least annually and is currently zero.

The first two changes to the level of ABR are free but the third and subsequent changes may incur a charge.

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

1.3% plus uplift. Rebating in 5% steps is allowed.

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


  For more information, call us on 0800 015 4909

  Email us at retirementsupport@aviva.com

 

Every financial product has its benefits and risks. Please consider them all carefully before recommending our With Profit Pension Annuity product to your clients:

 Benefits - It's been designed for clients who:


  • Are typically aged between 55 and 90.
  • Want a regular income for life that could increase in value.
  • Understand that the income could go down as well as up.
  • Have a pension fund of at least £20,000 after payment of tax-free cash and adviser charges.
  • Could benefit from consolidating multiple pension pots.
  • Would like some flexibility in their future income arrangements.
  • Would like the option to switch to a conventional annuity at any time after a year.

Risks -  It's unlikely to be suitable for clients who:


  • Don't like the idea that their income could go down, as well as up. 
  • Don't like the uncertainty of their income not keeping pace with inflation.
  • Belong to a defined benefits company scheme or want to carry on paying money into their current pension scheme.
  • Need more flexibility than this product offers: clients can only change the ABR in line with the limits, or convert it into a conventional annuity after the first anniversary.

What do you need to think about?


  • Does your client want more flexibility than this product can offer?
  • Are there life expectancy, or health and lifestyle issues you should consider?
  • How much is their pension fund worth, does their policy have guaranteed annuity options?
  • Your clients’ income could go down as well as up, do they understand this and how could that affect them over a period of time?
  • Do your clients’ attitudes to risk reflect an appetite for loss, as well as potential gain?
  • Do your clients realise they can’t cash this plan in at any time?

Possible alternatives:


  • Income drawdown.
  • Open Market Option pension annuity.
  • Other forms of non-pension savings and investments.

Contact us

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

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WA12002 06/2017