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).

Income choice
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 inflation is offered, which could reduce your client's spending power in the future.

Offers the highest starting income, at a known and secure 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 and secure level of income with fixed yearly increases. This may protect your client's income against the effects of long-term inflation.

3 - Income changes each year in line with inflation

This option links changes in your client's income to the Retail Prices Index (RPI). Initial income will be lower than with a level annuity (option 1).

Aims to protect your client's income from the effects of inflation.

Options available
Many options are available on our Guaranteed Pension Annuity

• Guaranteed period (up to 10 years, 5 years for Protected Rights)
• Single or Joint-life
• Frequency of payments (Monthly/Quarterly/Half-yearly/Yearly)
• In advance or in arrears payments

Enhanced terms
Also, if your clients have an illness, condition or lifestyle habit that may shorten their life expectancy, you may be able to secure for them an Enhanced Guaranteed Pension Annuity which could typically provide payouts of up to 29% higher.

Risk factors
Inflation can reduce the spending power of your client's 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?
Prudential is a leading pension provider and has a strong consumer brand for pensions and retirement solutions.

In 2009, we paid retirement income to over 1.4 million individuals. Our reputation for integrity and acting responsibly has been earned over 160 years.

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