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 

Jack’s story

Guaranteed lifetime income

Next story

About Jack

Jack is 65 and about to retire. He isn’t a risk taker and has always been apprehensive about investing in stocks and shares. Despite this, Jack has built up £160,000 in his personal pension pot. He wants the peace of mind that his pension will allow him to pay the bills.

What are Jack’s objectives?

Jack wants to take £40,000 tax-free cash entitlement (which is 25% of his pension pot) immediately and then will use his remaining fund of £120,000 to provide a guaranteed lifetime income that keeps pace with inflation. He also wants to provide for his wife and children when he dies.

What does Jack get?

His adviser arranges a Lifetime Annuity that gives Jack an annual income of £5,000, which increases in line with changes to the Retail Price Index. This combined with his state pension is enough income to cover Jack’s essential outgoings. For extra peace of mind, he chooses a twenty-year guarantee period that will continue to make payments to his family if he dies before his 85th birthday. Jack will look to use his tax-free cash for discretionary spending.

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. 

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