Common questions

If your pension is with another company then the minimum pension fund we can accept is £5,000, after any tax-free cash. If you would like us to pay your tax-free cash as well as set up the annuity then your pension fund should be enough to cover £5,000 for the annuity plus any tax-free cash amount. For example, if you wanted to take the maximum 25% tax-free cash from your fund, you would need a pension fund of around £6,700, to leave a balance of £5,000.

No, there are other ways you can use your pension fund to give you a retirement income. 

When you took out your pension savings plan you will have set your retirement date at any age between 55 and 75. However, you don’t have to stop working or take your retirement benefits at that time – it’s simply the date at which you can stop paying into your pension fund and can use the money to give you an income.

 You can use the money you have saved to provide an income by choosing to:

• buy an annuity with your pension fund (which would be taxable under PAYE)
   
• take up to 25% of the value of your fund as tax-free cash, and take a smaller annuity
   
• transfer your fund to a more flexible retirement plan and take income withdrawals within limits set down by the government (you can still take up to 25% of this fund as a tax-free cash lump sum before the age of 75). This is called a drawdown plan and please bear in mind it is not suitable for everyone and will depend on your circumstances. Please speak to your financial adviser.

 The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested. If you’re unsure about the risks associated with funds, you should speak to your financial adviser.

Not at all. It's your pension and how much income you can get might make a big difference to how you live in retirement. To make sure you can get the best deal for you, you can use something called the open market option. Not all companies offer the same rate and you could get a better income with another company. Using your right to the open market option means you can shop around to get the best income for you.

You may also find that the company offering the best rate for one type of annuity may not offer the best rate once you add in different options, so make sure the rate you're comparing accurately reflects the annuity you want.

You can get an idea of the annuity rates from different companies on certain websites such as the Financial Services Authority's annuity comparison tables or other independent financial websites. However, not all companies show all their rates and different websites may only show annuity rates for certain scenarios, so it might be better to speak to a financial adviser.