Guaranteed Annuities
Guaranteed Annuity Rates
Some older pension policies have special guarantees that mean they may pay a much higher rate than is usual. Guaranteed Annuity Rates (GARs) could result in an income twice or even three times as high as policies without a GAR.
A conventional annuity is a contract whereby the insurance company agrees to pay you a guaranteed income either for a specific period or for the rest of your life in return for a capital sum. The capital is non-returnable and hence the income paid is relatively high.
Income paid is based on your age, i.e. the mortality factor and
interest rates on long-term gilts and income is paid annually, half
yearly, quarterly or monthly.
Payments from pension annuities are taxed as
income. Purchased life annuities have a capital and interest
element, the capital element is tax-free, the interest element is
taxable.
Independent Annuity Advice
For the lastest annuity rates and a personalised assessment of your pension/ annuity please speak to the independent annuity advice team from one our partner firms for a no obligation consultation.
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