 |
Home | Pensions Home | Join | Update your details | Contact | Store |  |
|
|
|||
|
|
  |
|
  |
 |
  |
|
|
 |
|||
 |
 |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
 Home Pensions
Annuity02 January 2008An annuity is a product that anyone with a defined contribution/money purchase pension buys from an insurance company at retirement, which gives them a regular series of cash payments for the rest of their life in return for their pension fund. The amount of pension you get in return for your pension pot is called the annuity rate. The annuity rate is the annual rate of pension for every £100 in your fund. Annuity rates vary with age. The younger you are when you purchase an annuity the less income you will get. The older you are the bigger the income. Annuity rates for women are lower than for men because on average they live longer and are expected to receive the income for a longer period. Typically a male aged 60 with a fund of £100 might expect an annual pension of £6.50 (with no widow's pension or annual increases once the pension starts). This figure is shown for illustrative purposes only for to help explain how annuities work. If you choose to have a pension for your spouse in the event of you dying first, or annual increase in the pension you have to decide when the annuity starts and you will receive a lower amount of standard pension. You don't have to buy your annuity from the pension provider running your scheme. You will have an Open Market option which allows you to choose any insurance company where the annuity rates maybe better. The FSA publishes comparative tables of annuity rates to make it easier for consumers to shop around. www.fsa.gov.uk/tables The purchase of an annuity is the origin of the expression money purchase schemes because you use the money in your fund to purchase your pension at retirement. The Pensions Regulator has published a booklet, "Your retirement choices - defined contribution occupational pension schemes". See also Approaching retirement-money purchase schemes Contact DetailsPensions section Ph: 0161 249 2440 Fax: 0161 249 2475 Email: pensions@usdaw.org.uk  Printer Friendly Page  Email to a Friend
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Join | Update Your Details | Contact | Feedback | Site Map | Privacy | Site Survey |
|
© 2003 (USDAW) Union of Shop, Distributive and Allied Workers |
 |
