Lifetime Annuities & Scheme Pension

A guaranteed income for life

The lifetime annuity uses the money you have saved in your pension plan to provide you with a guaranteed, regular income for your lifetime and, if you so choose at the outset, your chosen beneficiary’s lifetime, for example your partner.

  • Access all your tax-free cash at the start
  • Choose a level or escalating income (or RPI linked)
  • Choose the frequency of any income payments (monthly, quarterly, half yearly or annually)
  • Choose to have your income in advance (paid as soon as possible after the policy is set up) or in arrears (for example, if paid monthly it would start at the end of the first month)
  • Choose a guarantee period (from one month to 30 years) payable on your death
  • Choose to provide an income for your chosen beneficiary on your death (this can be any person aged 35 or over, or 50 and over for enhanced annuities).
  • Choose annuity protection that pays a lump sum to your chosen beneficiary(ies) on your death before age 75.
  • You may qualify for an enhanced annuity (with a higher income than the standard annuity)

The Lifetime annuity lets you take all your tax-free cash at outset and purchase a guaranteed income for the rest of your life.  You can choose to have a guarantee period and/or provide an income for a chosen beneficiary for the rest of their life. 

Once your policy is set up, you cannot change it or cash it in, even if your circumstances change. 

Your income will stop when you die, unless you have chosen for it to continue or have taken out annuity protection to provide a lump sum. 

Inflation will reduce the spending power of your income, especially if you have chosen an income that does not increase in each year.  

You can choose to buy your annuity policy from any annuity provider – this is called the Open Market Option.

The lifetime annuity will appeal to those aged 55 or over, with savings in a UK registered pension scheme, that want to access all their tax-free cash (known as pension commencement lump sum or PCLS) and secure a guaranteed lifetime income. The minimum initial investment is £10,000 (after any tax-free cash has been taken).

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Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority.

Canada Life International Assurance (Ireland) DAC is authorised and regulated by the Central Bank of Ireland.