Annuities
at Opus Gold
You can start to take your pension from the age of 55.
Part of your pension can be taken as a tax-free lump sum, usually up to 25% of the fund. The balance can then be used to provide an annuity, which is provided by an insurance company. This gives you a secure regular taxable income for the rest of your life in exchange for your pension fund. Certain guarantees and death benefits can be added at the time you purchase the annuity.
Once set up, the annuity is fixed and cannot be altered.
Key points to take into account
when considering an annuity purchase:
It is important to ‘shop around’ as different annuity companies have different annuity rates and it is rarely advantageous to remain with your current provider.
There are valuable options, such as level or increasing income, guarantee periods and protection for your spouse or civil partner. As this is a one off decision it is imperative that you receive advice to ensure that you choose the right option.
Should you smoke, or have a particular medical condition you may be able to receive a higher income.
Annuities can also be purchased with cash rather than the proceeds from a pension. This is known as a purchased life annuity. This type of annuity is tax efficient as only a proportion of the income is taxed. This is because HMRC view the income as part interest and part return of capital.
Whatever your needs, for what is arguably one of the most important stages in your financial life, we would be happy to discuss this with you to see what we can do to help.