Guaranteed Annuity

Our Guaranteed Pension Annuity is a conventional annuity that pays your client a regular guaranteed income for the rest of their life. Your client can choose whether their income stays the same throughout their life, goes up each year by a fixed %, or matches yearly changes in inflation. The minimum annuity investment we can accept is £10,000 (after tax free cash).

*Please note there is no minimum annuity investment if your clients buys the annuity from the proceeds of the Prudential Personal Pension.

Benefits of our Guaranteed Pension Annuity

Provides a known and secure level of income, allowing your client to easily budget their spending against their income.

If your client arranges joint-life terms, their dependant will also receive an income for the rest of their life if your client dies first.

If your client selects the guarantee option, benefits can be guaranteed to be paid for up to a period of 10 years.

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 index-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 your clients annuity, will mean they will need to accept a lower starting income.