Shop around, the cost of a secure income (or annuity) can vary a lot.
You can use all or part of your fund to buy an income for life from an external provider. Your funds are transferred to the new provider to meet the cost and are no longer invested for you. The cost of the income will vary from time to time, usually reflecting long term interest rates. Tax is payable on the income you receive at your normal marginal rate.
You will need to take some decisions about the type of pension you want to buy which will include:
Different types of products are available and it is really important that you take financial advice or understand the details as your decision may have a significant impact on your future income. The cost of buying a pension income varies between providers and so it is important that you get the best possible rate.
We strongly recommend that you use the Pension Wise service provided by the Government and take independent financial advice where appropriate.
The information on this page is provided in good faith but is not legal or financial advice or binding on the Trustee. The trust deed and rules will override in the event of any inconsistency.
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Pensions made easy, how to choose the right pension for you today!
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