Annuities

Woman smiling

Shop around for a choice of annuities

Click on the link to their website and get quotes from a range of leading providers.
The Age UK Annuity Service is provided by Just Retirement Solutions Limited.

Grandad playing with his grandsonDiscover if you could boost your retirement income. When you approach retirement age, you will have to decide what to do with the pension fund you have built up. One option is to buy an annuity which, unlike other retirement products, converts your pension fund into a guaranteed retirement income for the rest of your life.

Annuities: You only get one chance

Most people are unaware that they can shop around for the best annuity rates and that you do not have to buy your annuity from your current pension fund provider.There can be a noticeable difference in the income that different annuities will pay you. So it’s important that you shop around, as you only have one opportunity to do so – once you are committed to a provider and started to receive an income the decision can’t be reversed.

Compare quotes with the Age UK Annuity Service

We are committed to helping everyone get the best possible retirement. That’s why we’ve teamed up with Just Retirement Solutions Limited, who specialise in helping people make the most of their retirement income.Take the time to speak to one of Just Retirement Solutions specialists today and they will take you through the process, step-by-step, and help you find and shape an annuity to meet your needs. Call now on 03332 209 471* to start your retirement journey. Lines are open 9am - 8pm Monday - Friday. Alternatively, you can use the online planner to compare annuities today.

What to expect

Man in a supermarket1. Your existing pension provider will contact you

Your existing pension provider will contact you 6 to 12 months before your retirement date. You will receive an annuity statement confirming your pension annuity rate. This will tell you how much retirement income your pension fund from your provider will be able to offer you. You don’t have to accept this offer. It is very important to consider your options and shop around.

2. Can you get an uplift on your annuity?

You could be entitled to an enhanced annuity which takes your health and lifestyles into account and can generate a higher income. Even minor ‘medical conditions’ such as high blood pressure,  high cholesterol levels or being a smoker could give you an increased annual income. Some pension providers do not offer an enhanced annuity option.
If you are healthy, you could still get more income. All you need to do is use our service to shop around for quotes from other annuity providers.

3. Get your quotes

Input your details into the online annuity planner to get quotes from a range of annuity providers such as Aviva, Just Retirement, and Prudential. The Age UK Annuity Service is provided by Just Retirement Solutions Limited.

4. Compare and choose an annuity

Compare the quotes from the online annuity planner to the quote you’ve received from your existing provider. If you can get a better rate from your existing provider, great. If using the Age UK Annuity Service can get you more, then even better. There is no fee for using the Age UK Annuity Service. However if you would prefer to receive some advice on your decision then Just Retirement Solutions can put you in touch with an expert.
 
If you decide to accept one of the quotes you receive using the service you can apply straightaway. Just Retirement Solutions will send you an application form to complete and guide you through the information you’ll need to provide. They’ll liaise with your pension provider to make sure you receive your retirement income promptly.

FAQ

Here are some of the most frequently asked questions and answers concerning annuities.

Q. What are the other options to taking out an annuity?
Q. Do I have to use all my pension to buy an annuity?
Q. What are the benefits of taking out an annuity sooner rather than later?
Q. What is the open market option?
Q. What is an "enhanced" annuity?
Q. Will my partner get any money from my annuity when I die?

Q.What are the other options to taking out an annuity?
A. You can opt for a Drawdown pension, which enables you to draw an income while leaving your remaining pension funds invested. You can draw down income from your pension fund (subject to limits set by HM Revenue and Customs) but it is not without risk and you should therefore obtain financial advice.

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Q. Do I have to use all my pension to buy an annuity?
A. No. You are normally able to take up to 25% of your pension fund as tax-free cash.

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Q. What are the benefits of taking out an annuity sooner rather than later?
A. By taking out an annuity you will enjoy a guaranteed regular income until you die that can enable you to plan with certainty and spare you from having to monitor the progress of your pension fund and make ongoing investment decisions.

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Q. What is the open market option?
A. The ‘open market option’ entitles you to shop around the market for the most suitable annuity income at the point at which you decide to use your pension fund to buy an annuity. Using the open market option could secure you a higher income than the annuity offered by your pension provider and, if you have or have had health problems and qualify for an enhanced annuity, you could secure a much higher income still.

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Q. What is an "enhanced" annuity?
A. Enhanced annuities, offered by certain specialist providers, provide an income boost to those with mild health problems such as high blood pressure and cholesterol, to smokers, and others with more severe health or health related conditions such as cancer. They could pay an income which (depending on your medical condition) could be higher than a standard annuity.

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Q. Will my partner get any money from my annuity when I die?
A. If you choose a single-life annuity your partner will receive nothing when you die, but there are options that enable you to provide for your partner, such as spouse’s pension, guarantee periods and Value Protection, but these would need to be included when you set up your annuity. A partner is someone to whom you are married (this includes civil partnerships) or someone who, in the opinion of the administrator, is financially dependent on you at the date of your death.

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Advantages and disadvantages of Annuities

 

Advantages

Disadvantages

You know what income you will be receiving for the rest of your life.

Once you have secured your conventional annuity you cannot change it – even if your personal circumstances change or inflation (the cost of living) rises steeply.

You can usually take up to 25% of your pension pot as tax-free cash (now known as the Pension Commencement Lump Sum) before you purchase the annuity.

If you die relatively soon after taking out the annuity the money used to fund its purchase cannot be returned – even if you have only received a fraction back from the annuity provider as income payments.

You can choose to protect against this happening but it will mean having a smaller income from the outset.

Consider enhanced annuities which take your health and lifestyle into account when determining the income you will be paid.

If you haven't considered applying for an enhanced annuity, you might be losing out on income.

You have the security of knowing that you will never spend all your pension savings and you will always have an income.

The income you receive is dependent upon annuity rates at the time of purchase.

Depending on your personal circumstances, there are a number of options you may wish to include when you take out your annuity, including:

• Income for loved ones - providing for others, such as your spouse or dependants

• Guarantee period – this ensures your annuity will be paid for the duration of the guarantee period, even if you die early.

• Protection against inflation - you can choose to increase your annuity income in line with inflation.

• Value protection - returns a lump sum to your beneficiaries if you die without having received the full value of your pension fund.

By choosing to include annuity options, such as those listed opposite, it will usually mean you receive a lower initial income.

Click on the link to their website and get quotes from a range of leading providers.

Compare quotes

03332 209 471*

Lines are open: Mon - Fri 9am to 8pm. Calls may be recorded
The Age UK Annuity Service is provided by Just Retirement Solutions Limited.

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Find out more about the Age UK Annuity Service

Just Retirement Solutions Limited

Age UK Annuity Service is provided by Just Retirement Solutions Limited. Registered office: Vale House, Roebuck Close, Bancroft Road, Reigate, Surrey RH2 7RU. Registered in England Number 05125701. Just Retirement Solutions Limited is authorised and regulated by the Financial Conduct Authority.
 
* Calls to 03 numbers cost no more than a national rate call to an 01 or 02 number and must count towards any inclusive minutes in the same way as 01 and 02 calls. These rules apply to calls from any type of line including mobile, BT, other fixed line or payphone. Calls may be monitored or recorded for training purposes.

Age UK Enterprises Limited is the commercial arm of Age UK (charity no.1128267) and donates its net profits to that charity. Age UK Enterprises Limited is registered in England and Wales no.3156159. Registered address: Tavis House 1-6 Tavistock Square, London WC1H 9NA.

Age UK Enterprises Limited is authorised and regulated by the Financial Conduct Authority to introduce potential annuity customers.

Promoter: Age UK Enterprises Limited, Tavis House 1-6 Tavistock Square, London WC1H 9NA. Registered in England and Wales number 3156159.

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