What kind of annuity is right for me?

There are several types of annuity you can buy with your pension fund to turn it into an income:

• With-Profits Annuity - this is the most common form of investment-linked annuity. The income you receive each year depends upon the performance of the With-Profits Fund, the way in which your annuity is arranged at the outset and any bonuses that we announce. Your income has the potential for growth above inflation over the long-term. Income from With-Profits annuities can go down as well as up.
• Guaranteed Pension Annuity - this is also known as a conventional annuity that could either provide from the outset a guaranteed level income that you will receive from year to year. This allows you to budget easily, but your spending power can be reduced by the effects of inflation. Or you can help to give your income some protection by choosing fixed yearly increases, or by keeping it in line with inflation, but you will need to accept a lower starting income.
• Enhanced Annuity - the two annuities above may be available on enhanced terms to give you a higher income should you be suffering from a serious medical condition.
• Flexible Lifetime Annuity - this option is for people with a pension fund of £75,000 net or above, who want more choice over the income they receive and how their money is invested. The value of your investment may go down as well as up. This means that your income in retirement has the potential to increase or decrease.