UK Annuity (Pension Annuity)

A pension annuity is where you give your total pension fund to an insurance company. They then agree to pay you an income for life. You are required to use the bulk of your pension fund, usually 75% for this and you must do this before you are 75 years old.

The purpose of a UK annuity is to ensure that you do not spend the entire lump sum in one go, so that you have a guaranteed income and so do not have to rely on the state pension. Also annuities mean that you will receive a regular income, regardless of the length of your retirement, but it will stop paying when you die.

Even though you have not had to pay tax on your pension fund, any income you get from your annuity is now subject to tax.

Many people do not realise that they do not have to buy their pension annuity from their existing pension provider. It is a good idea to shop around as the chances are you will get a better deal. However you must not take this decision lightly as you cannot change your mind should a better deal come along.

As there is no going back once you have selected an annuity, we recommend that you get some financial advice about UK pensions and annuities.

However please feel free to make your own UK annuity comparisons using the links below:

	FSA - Annuities Get jargon-free, impartial info about pensions from the FSA.
	Looking for Retirement Annuities We have reviewed and sorted 99 odd links for retirement annuities - the top 10 list is presented here..
	Find Retirement Annuities at Ask.com Whatever you're looking for, find it with Ask.com.