What is an annuity?

You can normally choose when to start taking an income from your pension at anytime between the ages of 55 (50 until 5th April 2010) and 75. When you do this, part of your pension can normally be taken as a tax-free lump sum (most people can take up to 25% of the fund). The remainder of your pension fund can then be converted into an annuity which pays you a taxable income for the rest of your life.

Annuities are provided by insurance companies. The company that you choose promises to pay you a regular income in exchange for your pension fund, no matter how long you live.

Once set up, the basis of your annuity is fixed and offers a secure income. You can rest safe in the knowledge that your income will never run out. However, because the income is fixed it is important to choose your options carefully. Once it is set up you cannot change your mind.

Why shop around?

There are two very important points to consider when setting up an annuity:

You rarely have to stay with your existing pension provider when you retire and often they will not offer you the best annuity income.
Different annuity providers offer different annuity rates. The difference between the best and worst annuity incomes can be significant.

I received the best service for the best annuity I could find. Particularly helpful with the form filling. You took the stress away from what I though was going to be a stressful experience. Thank you.
Mr R Mason, Essex

The annuity search engine is designed to help you get the highest income possible from your pension. Shopping around in this way is known as using the open market option.

Our online annuity search engine makes it quick and easy to find a competitive retirement income and has already helped thousands of people get a significant higher annuity income for life.

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Use our online annuity search engine to compare rates from the UK's top annuity providers in an instant. Quotes are free and without obligation.

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Did you know?...

You could increase
your income by
up to 30%,
simply by using
our annuity quote
service to find the best deal.

Client
case study

Mr Williams from Surrey used our annuity service to get an extra £2,808 gross each year for life. That was the difference between the best and worst annuity rates for him from a panel of leading providers. Read his story...

Client case study:
Mr Williams from Surrey

Mr Williams, Hargreaves Lansdown Annuity Quote Service client

"As an existing HL client, when considering purchasing an annuity with the funds in my SIPP I naturally obtained quotes from the Hargreaves Lansdown annuities team. The administration was efficient with letters and phone calls being responded to promptly. Throughout, I had one main point of contact, they were always helpful, cheerful and patient. The high level of personal service provided impressed me"

Confused about annuities?

If you have a question or would like more information call our friendly annuities support team on:

0117 980 9940
Monday to Friday, 8:30am to 6pm