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Annuity Rates and online quote
Quick Guide to Retirement Options PDF Print E-mail

The Pension Option pages contain a substantial amount of technical information. The following summary will hopefully be of assistance.

ANNUITYPHASED RETIREMENTINCOME WITHDRAWAL COMBINATION PLANS
An annuity gives you a regular and secure income for your lifetimeInstead of using your whole pension fund to buy an annuity, only part is used.Instead of encashing your pension fund, it is left invested and you draw a tax-free cash sum and income. If taken the tax-free cash must be taken at outset.Part of your fund is moved into income withdrawal to provide tax-free cash and income
Your pension fund is encashed to provide a tax-free cash sum, with the balance used to buy an annuity from an insurance company.The balance remains invested with a view to providing higher future benefits.The maximum income is roughly equal to an annuity.The balance remains invested to provide future benefits.
You choose a level or increasing annuity payable monthly, quarterly or yearly.Your starting annuity is smaller, but is supplemented by the tax-free cash sum, which can be spent as income.You can choose the income you want, and when you want it, up to the maximum figures up to age 75, when you will normally have to buy an annuity.You can draw further tax-free lump sums and additional drawdown income when you wish.
You can also buy spouse's or dependant's benefits, but this will reduce your own annuity.In future years, you encash further parts of your fund to provide more cash and purchase further annuities.If investments do well, you may benefit from higher future income payments, and vice versa.If investments do well, you may benefit from higher future income payments, and vice versa.
Once you have bought your annuity, you usually cannot change your mind or change the benefits, even if your circumstances change.Because you don't commit all your funds to buy an annuity immediately, you keep your options open.On death, the remaining fund is available to pay benefits to your family or dependants.Death benefits are even more flexible than under income withdrawal.
 
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