Annuities

An annuity is a contract with an insurance company, the vast majority of which pay you an income for life.  

Your annuity choice will be one of the most important decisions you ever have to make, particularly because once you have purchased one you cannot swap or change it - if you buy the incorrect one you are stuck with it!

Essentially, there are two different types of annuity - a Compulsory Purchase Annuity, bought from your pension fund, and a Purchased Life Annuity, purchased from your own resources.

As a Purchased Life Annuity is purchased from your own funds, only part of your income is liable to tax, unlike a Compulsory Purchase Annuity where the entire annuity is liable to income tax.

To find out more about annuities or obtain an annuity quotation please contact us.