This type of pension annuity not only guarantees to pay you an income for life – it also guarantees how much income you’ll get. So you know exactly where you stand.
This kind of annuity is also known as traditional or conventional annuity.
How much income you will get from an annuity will mainly depend on two things?
1. Current long term interest rates – when you buy your guaranteed pension annuity you’re locked into it, at today’s rates, for the rest of your life.
2. How long you’re expected to live – this depends largely on your age and sex.
An annuity is an income for life, so once you’ve made your choice and everything has been set up, you can’t change your mind.
To get advice on guaranteed annuities call us free on 0800 043 0725