A Puchased Life Annuity aims to provide you with a guaranteed income for life and the option for you to increase your income annually to reflect inflation rates. The funds to purchase this annuity must come from a private source, which can include your Pension Commencement Lump Sum.
Purchased Life Annuities help to supplement your standard pension and, because of the favourable tax treatment* they receive, enable you to maximise your income in retirement.