Buying A Pension Annuity -

: Pays an income for a specific number of years rather than for life.

: Increases each year, either by a fixed percentage or in line with inflation, to protect your purchasing power. Key Considerations Before Purchasing Consumer's Guide to Understanding Annuities

: In return, the insurer provides regular payments that act like a salary during retirement. buying a pension annuity

: You pay a lump sum from your "defined contribution" pension to an insurance company.

: Offers higher income if you have certain medical conditions or lifestyle factors (e.g., smoking) that may shorten life expectancy. : Pays an income for a specific number

: Provides a guaranteed income for the remainder of your life, no matter how long you live.

: The amount you receive depends on several factors: The total size of your pension pot. : You pay a lump sum from your

Current annuity rates (which recently reached an 18-year high due to rising gilt yields). Your age and health status. Common Types of Annuities