An annuity is a financial product provided by banks or insurance companies that offers you a consistent income for a set period or even for the rest of your life. Imagine it like an agreement where you give a financial institution money each month over a number of years (your pension) and in return, they pay you smaller amounts at regular intervals when you reach retirement until you die.

Annuities can be a useful way to ensure a stable income during retirement or to cover specific financial needs.

Deciding if You Need One

Annuities can be a beneficial choice for those who want a secure and predictable income during their later years. However, they might not be the ideal option for everyone. It's essential to discuss your financial goals and needs with expert to determine if an annuity is the right fit for you.

Keep in mind that an annuity is just one method of planning for your financial future. There are numerous other investment and savings strategies available to help you secure your financial well-being as you grow older. Always conduct thorough research and seek professional guidance if you're unsure about the best course of action.

Exploring Different Types of Annuities in the UK

There are different types of annuities available and we have covered each of them in our pension guides section.

There are lifetime annuities, fixed-term annuities, joint-life annuities for couples and enhanced annuities for those with shorter life expectancies.

Each of which has many different options, at Pense we will ensure you choose the option most suitable for your circumstances.