Guaranteed Pension Annuity

Guaranteed Pension Annuity is Prudential's conventional pension annuity, which guarantees to pay your clients a regular income, usually for life. When your clients purchase a Guaranteed Pension Annuity, there are three different income options to choose from. Income can always stay the same, go up each year by a fixed percentage, or match yearly changes in inflation by being linked to the Retail Prices Index (RPI).

For each of the following income options, the minimum investment is £10,000 after any tax-free cash has been taken*.

1 - Income always stays the same

This option could give your client a higher initial income but no protection against the effects of inflation is offered, which could reduce your clients' buying power in the future.

Offers the highest starting income at a known level - allowing your client to know exactly how much they will get.

2 - Income increases yearly by a pre-determined fixed percentage

Your client can select a yearly increase of up to 8.5%. The higher the rate of increase the lower the initial income would be.

Provides a known level of income with fixed yearly increases. This may help protect your clients' income against the effects of inflation.

3 - Income changes each year in line with inflation

This option links changes in your clients' income to the Retail Prices Index (RPI). Initial income will be lower than with a level Guaranteed Pension Annuity (option 1).

Aims to protect your clients' income from the effects of inflation. For an extra cost at the start, your client can choose a "negative inflation" guarantee so income wouldn't go down for any periods where inflation falls below zero.

Options available
Many options are available on our Guaranteed Pension Annuity

• Guarantee period (up to 10 years)
• Single or Joint-life
• Frequency of payments (Monthly/Quarterly/Half-yearly/Yearly)
• In advance or in arrears payments

Risk factors
The effects of inflation can reduce the buying power of your clients' income in the future, especially if they choose a level income.

If your client chooses an inflation-proofed income (through an RPI-linked annuity) and inflation falls below zero, their income will go down, unless they choose the negative inflation guarantee.

Choosing fixed yearly increases, or inflation-proofing annuity, will mean they will need to accept a lower starting income.

Why choose Prudential?
We're one of the UK's leading pension annuity providers. We currently pay over £2 billion in pension income** to more than 1.5 million people***.

We're financially strong. We're rated Aa2 for financial strength by Moody's, as at October 2012. This represents one of the highest ratings currently given by this company to any UK Life Assurance Company.

Established in 1848, we've been in business now for more than 160 years. Your client can be confident that their Prudential annuity will be around as long as they are.

For more information or to request a quotation, call us on 0808 234 5100 (option 1) or email our team at pruannuities.contactquotes@prudential.co.uk or

For requests due to medical and/or lifestyle conditions, please request a quotation from enhanced.annuities@prudential.co.uk.

Lines are open from 8.30am to 6.00pm Monday to Friday. We may monitor or record calls for quality and security purposes.

* There is no minimum annuity investment if your client buys the annuity from the proceeds of a Prudential pension.
** Prudential 2012.
*** Prudential March 2013.