Annuities

Annuities overview

Once you’ve retired, you’ll need to convert your pension into a regular income. A popular way to do this is to buy an annuity. An annuity is simply a type of policy that provides you with a regular taxable income for life, in exchange for a lump sum payment. A Scottish Widows Conventional Annuity lets you take out a tax-free cash sum, then convert what’s left into a taxable income.

Features & benefits

• Straightforward and easy to understand
• Available for pension funds of all sizes
• Your income is guaranteed for life
• You may also provide an income for a spouse or dependant (if applicable).
• No need to monitor your investment
• No risk of stock market falls, or economic slumps
• Choose to have your income paid, monthly, quarterly, half yearly, yearly, in advance or arrear

Eligibility

• You can decide to buy an annuity from age 55, even if you’re still working

The level of income you receive from your pension plan will depend upon a number of factors including the value of the plan when you decide to take your pension, which isn't guaranteed and can go down as well as up.