Pros


  • Guaranteed to pay you an income for the rest of your life
  • You can bolt on various options to tailor the annuity to your needs such as a spouse's/partner's annuity that continues to pay them when you die or an increasing option, so your annuity income increases each year
  • If you are in ill health or have a medical condition you can qualify for a higher starting annuity
  • You can take up to 25% of your savings as a tax free lump sum and use the remainder to buy an annuity

Cons


  • The more options you choose to build into your annuity the more it will cost you and therefore reduce the income quote you receive. For example if you include a spouse's or dependants annuity.
  • Any income you receive from an annuity will not benefit from any investment growth as the money is no longer invested
  • The decision to buy an annuity cannot be reversed. The government are consulting on changes in this area but currently the purchase of an annuity cannot be undone
  • Annuity income is taxable as are other income options
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Contact

If you are a member of a pension plan administered by BlackRock, then please contact us at


0345 601 7720

blackrock.pensionsuk@blackrock.com