What is a pension annuity?

An annuity is a guaranteed income that you purchase with some or all of your pension savings. This income can be for an agreed fixed term or for life. Income payments can be monthly, quarterly, half-yearly or yearly. Additionally, to help combat inflation, you can decide to increase your income by a set amount every year, or have it vary in line with the Retail Price Index (one of the key ways of measuring consumer inflation). You will need to make that decision when you buy the annuity, and it may have the effect of reducing the amount of income you start with. The amount of income you get with an annuity depends on several factors. For example, if you suffer from a health condition, you might qualify for a higher monthly income. <a href="https://www.canadalife.co.uk/retirement/lifetime-annuities-scheme-pension/">Learn more about our lifetime pension annuities</a>

What is pension drawdown?

Pension drawdown, also called flexi-access drawdown, is a way to draw an income from your pension pot while leaving your funds invested. A major benefit of this is that your pension fund is given the opportunity to grow, which helps combat the effect of inflation on your money. Unfortunately, because investments can fall as well as rise, the value of your capital is never guaranteed, and your pension fund could decrease, too. It’s important to discuss the benefits and risks of drawdown with your adviser. When you reach retirement age, you can take an income from your pension drawdown. You have the flexibility to choose when you take an income, and how much. <a href="https://www.canadalife.co.uk/retirement/the-retirement-account/">Learn more about The Retirement Account</a>

Where can I get pension advice?

We strongly recommend speaking with an independent financial adviser (IFA) before making any big decisions regarding your pension. Independence in financial advice is important, as this means that the adviser isn’t representing any provider and is better placed to offer objective insight. An adviser can help you understand your risks, and ways to manage these. You can ask your adviser about Canada Life, and they’ll be able to tell if you if our products are well-suited to your goals and circumstances. <a href="https://www.canadalife.co.uk/customer-support/find-a-financial-adviser/">Find a financial adviser</a> Other, free alternatives include: <ul> <li><a href="https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise">Pension Wise</a> – a UK government service</li> <li><a href="https://moneyandpensionsservice.org.uk/">Money and Pension Service</a> – an independent body sponsored by the Department for Work and Pensions</li> </ul>

How can I consolidate my pensions?

You can consolidate your pensions by moving all your individual pots into a single plan, like our Retirement Account. To do this, you or your adviser would need to contact your other providers and instruct them to make the transfer. Consolidation makes your pension easier to manage and keep track of, and it gives you a clearer idea of exactly how much you can expect to receive when you retire. It may also provide you with more control and a wider or more appropriate range of investment and product options. You may even be able to reduce the overall charges you pay, too. However, consolidation should be considered carefully: there could be costs involved, and some funds may be better performing than others, which could impact the ultimate value of your savings pot. Some pensions also offer guarantees that you may not want to give up. We’d recommend speaking to an independent financial adviser (IFA) before making any big decisions regarding your pension. <a href="https://www.canadalife.co.uk/customer-support/find-a-financial-adviser/">Find a financial adviser</a>

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Our pension plans and annuities are designed to help you make the most of your retirement. Whether you’re looking to combine your pensions, make regular or one-off contributions, build up retirement savings or take retirement benefits, we have a range of solutions to meet your needs.

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Your guide to All-Things-Pension

Your pension is essential to your financial wellbeing in later life. We know that learning how pensions work and how to make the most of yours can be daunting for anyone. Which is why we’ve put together our All-Things-Pension Guide.

Here, you’ll find info on a variety of key topics – all designed to help you navigate the world of pensions.

And don’t worry, it’s in plain English.

Discover our All-Things-Pension-Guide

Your retirement journey

As your progress through your retirement journey, your priorities will most likely change over time. Gain a deeper insight into what you should know at each stage.

Stage 1: Saving

Learn more about the ways you can build your pot and save towards your retirement.

Stage 2: Getting ready

Find out how you can organise your money to support your changing lifestyle and needs.

Stage 3: Your choices

Better understand what options you’ll have at retirement.

Getting independent financial advice

We believe in the importance of good financial advice, so our retirement products are only available through Independent Financial Advisers (IFAs). An IFA will assess your goals and help you make informed financial decisions. Ask your adviser about Canada Life, or learn more about how financial advice works.