Lifetime Annuities & Scheme Pension

A secure, regular income for life

Our lifetime annuity uses the money saved in your pension plan to give you a guaranteed, regular income for life. You can also choose to provide an income for your chosen beneficiary(ies), like a spouse or partner. Once you’ve set up your policy, you can’t normally revise or cancel it so we recommend that you seek professional advice before you apply.

If you have recently received a letter regarding tax code changes that may impact the tax you pay on your annuity income, you may need to contact HMRC to discuss your taxation position. You can do this by logging onto your online Personal Tax Account via www.gov.uk, calling the helpline on 0300 200 3300, or via post Sefton Area, HM Revenue & Customs PAYE, PO Box 1970 Liverpool, L75 1WX.

If you have any questions about this letter or need assistance in understanding any of the points raised, please contact retirementservicing@canadalife.co.uk 

Bev’s Story

Enhanced retirement income

Next story

About Bev

Bev is aged 60, divorced with one daughter and has just given up work due to moderate health issues.  

What are Bev’s objectives?

Bev’s number one objective is to get the maximum income she can from her £50,000 pension pot. She cannot afford to take any risk with her money and needs regular, guaranteed lifetime income. Bev would also like her daughter to benefit from her pension in case she dies earlier than she hopes.

What does Bev get?

Bev’s adviser arranges a Lifetime Annuity. She completes a medical questionnaire when she applies and discloses her current health issues. As a result, Bev receives a higher guaranteed income than someone who is healthy. She also opts for 100% value protection. This means that her daughter would receive a lump sum payment, equal to the initial premium minus the annuity payments already received. If Bev dies prior to age 75, the benefit will be received tax free. If Bev is age 75 or older when she dies, the lump sum will be taxable at her daughter's marginal tax rate. 

Please note, the figures used in this example are for illustration purposes only. This example is based on our understanding of HMRC rules, which  may change.

How to get started

Content approved: 20/05/2024