Guaranteed Pension Annuity

For each of the following income options, the minimum investment is £10,000 after any tax-free cash has been taken.

Option one - Your income stays the same for the rest of your life.
This option could give you a higher initial income but you won't get any increases to protect your income against inflation, which could reduce your spending power in the future.

Option two - Your income rises each year by a fixed amount.
You can select a yearly increase of up to 8.5%. The higher the rate of increase the more your initial income will be reduced.

Option three - Your income changes each year in line with inflation.
This option links your income to changes in the RPI, a measure of inflation in the UK. You will start with a lower income than if you choose an income which does not increase. Also, if the RPI is negative, your income will decrease in line with the index unless you opt for a negative inflation guarantee.

• Option one - Offers the highest starting income, at a known and secure level - allowing you to budget your spending against your income.
• Option two - Provides a known and secure level of income with fixed yearly increases. This may protect your income against the effects of inflation.
• Option three - Aims to protect your income from the effects of inflation.

If you have an illness, condition or lifestyle habit that may shorten your life expectancy, you may be able to purchase a Guaranteed Pension Annuity on enhanced terms.

• Option one - Inflation can reduce the spending power of your income in the future, especially if you choose a level income.
• Option two - The higher the yearly increases in income you select, the lower the starting income.
• Option three - If you link your income to changes in the RPI and the rate of inflation falls below zero, your income will go down. You can select an option to protect yourself against this, but this will reduce your starting income.

We are the number one provider of annuities in the UK.* Over one million people rely on us to pay their pension every year and in 2009 more than 100,000 people chose to buy their annuity with us.

Find out about the wide range of annuities we offer and why choosing an annuity with us makes sense.

*Source: Company New Business Press Releases 2010