Income for life
Over the years you or your employer may have paid money into a pension.
This pension has acted as a tax efficient investment while you have
been paying money into it. Now, as your working life winds down you
will stop paying into your pension and will need to decide how you're
going to use the money you've saved to provide you with an income
in retirement.
The most secure way of providing a guaranteed income for the rest
of your life, no matter how long you live, is through an annuity.
An annuity guarantees to pay you a regular income for life, providing
you with the security and peace of mind you deserve. So that you can
spend more time enjoying the good things in life, like spending more
quality time with family, going on holiday, improving your home and
achieving new goals!
You can personalise your annuity by choosing from a range of options,
for example, you can choose for your income to increase in line with
inflation (the retail prices index) or for your dependant(s) to receive
an income when you die. The options that you choose to add on will
reduce the amount of income that you will receive. You need to be
wise about the options you choose because they cannot be changed once
you have bought your plan.
You may be thinking where can you buy one? You can buy an annuity
from an insurance company, such as Norwich Union. You have control
over who you choose to buy an annuity from, it doesn't have to be
with the company you had your pension with. The amount of income you
receive will vary between different insurance companies and so it's
important to shop around!
Why choose Norwich Union?
Competitive Annuity Provider
- Norwich Union were Highly Commended by Moneyfacts in 2007 for
being one of the most competitive annuity providers.
A leading annuity provider
We are a leading annuity provider in the UK and currently pay out
annuities to over 350,000 customers.
Competitive annuity pricing
We constantly monitor the market to ensure we offer the best prices
on our annuities.
Strength to deliver
We are one of the UK's strongest financial companies. We have the
strength to deliver.
Financial strength is a measure of company solvency and can go up
as well as down
Annuities to suit your needs and priorities
Our annuity products offer a variety of options to suit your needs,
both now and in the future.
Switching to Norwich Union is easy
Our advisers will help you in getting the right annuity with the
right options for you. We can only advise on our own products and services.
We will deal with your pension providers on
your behalf making your annuity purchase as straightforward as possible
for you.
Our annuity products offer a range of options to suit your needs.
Find out more about Norwich Union annuities here
Do you already have a Norwich Union annuity? You can find more help
and information on our existing customer site.
What types of annuity are available from Norwich Union?
We simply offer three annuity products, the type of annuity you choose
will depend on what source of money you want to buy it with.
- Most annuities are bought with the money you or your employer
have paid into your pension, if so, you can choose our Pension
Annuity or With Profits
Pension Annuity.
- Alternatively, you may have money from another source, such as
another investment or inheritance, which you want to use to provide
additional income in retirement, if so, you can choose our Immediate
Life Annuity.
The table below provides a summary of the various options available
on our annuity products. This will help you identify the differences
between the products and which is most suitable for you. You may find
it useful to read about our products before using the table. You can
do this by clicking on the links below or selecting the appropriate
tab.
| |
Pension
Annuity |
With Profits
Pension Annuity |
Immediate
life Annuity |
| |
Our Pension Annuity pays a guaranteed income which you can
choose to be paid at the same level each year or increase each
year by a fixed percentage or in line with inflation measured
by the Retail Prices Index. |
Our With Profits Pension Annuity provides the potential for
your pension income to grow in retirement through investing
in the With-Profit Fund. Your income may go down as well as
up. |
Our Immediate Life Annuity pays a guaranteed income which
you can choose to be paid at the same level each year or increase
each year by a fixed percentage. |
| Source of Money |
| Your pension fund |
 |
|
|
| Cash lump sum |
|
|
|
| Minimum purchase amount (after tax-free cash (if any)) |
£10,000 |
£20,000 |
£7,500 |
| What options are available? |
| Level income |
|
|
|
| Yearly increase by a fixed percentage |
|
|
|
| Yearly increase in line with increases in the Retail
Price Index |
|
|
|
| Dependant's Pension |
|
|
|
| Guaranteed Period |
|
|
|
| How is it taxed? |
Your pension will be treated as earned income and taxed according
to your personal circumstances. |
Your pension will be treated as earned income and taxed according
to your personal circumstances. |
Your payments are normally split into two parts:
- A 'capital part' - which is tax-free
- An 'interest' part' - which is taxed.
The 'interest' part will be taxed. We'll normally deduct tax
at the savings rate. If you're a higher rate taxpayer, you'll
have to pay additional tax to HM Revenue & Customs. |
| How frequently is it paid? |
| Monthly |
|
|
|
| Quarterly |
|
|
|
| Half-Yearly |
|
|
|
| Yearly |
|
|
|
| |
| What are the charges? |
Charges are taken into account when we work out the price
of the pension. No further charges will be taken from your pension. |
Charges are taken into account when we work out the price
of the initial pension and when we decide the bonuses to add
to your pension each year |
Charges are taken into account when we work out the price
of the pension. No further charges will be taken from your pension. |
| How flexible is it? |
The options you choose at the start of your plan cannot be
changed and once you have bought your annuity it has no cash
in value at any time. |
At any time after the first year you can:
- change the Anticipated Bonus rate within our limits at
the time.
- convert your plan to a Conventional Pension Annuity
In both cases we'll recalculate your pension
The other options you choose at the start of your plan cannot
be changed and once you have bought your annuity it has no cash
in value at any time. |
The options you choose at the start of your plan cannot be
changed and once you have bought your annuity it has no cash
in value at any time. |
Please note, tax laws may change in the future.
WC01002 03/2008
