Purchased Life Annuity

This type of annuity is purchased with private funds or by using the Pension Commencement Lump Sum element of a pension fund. For a single lump sum payment, you can guarantee that a regular income is paid to you for the rest of your life.

Purchased Life Annuities help to supplement your standard pension and, because of the favourable tax treatment they receive, enable you to maximise your income.

Suitable if:

• You have built up a private fund and want to receive a guaranteed income for the remainder of your life
• You want to maximise your pension income through a tax efficient annuity
• Your health and lifestyle may lead to a reduced life expectancy