A pension annuity is an investment product you purchase, typically with your pension pot, but can be from other sources, which allows to draw a regular retirement income for the rest of your life. You may choose options at outset for example to include regular increases, or for the income to be paid to your spouse in the event of your earlier death however once chosen, these options may never be changed. You cannot make further contributions to an annuity.
1 November 2022 at 20:18:33
This glossary definition has been deliberately kept as simple as possible to give a brief outline of the term to assist with general financial knowledge. It is not intended to give a detailed explanation. Please refer to our Legal Declarations.