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Retirement preparation

Annuity

A way of using pension money to buy income, with the duration and features set by the contract.

All Pensions Editorial TeamPublished Updated 1 min read

General information, not personal financial advice. Sources checked 2026-10-04. No independent specialist review is claimed.

What it means

An annuity converts some or all of a defined contribution pension into income. A lifetime annuity pays for life; a fixed-term annuity pays for an agreed period. These are different contracts, so preserve the description used in a quotation.

Sources: MoneyHelper: Annuities explained

The features matter

Payment increases, payments after death and other selected features affect what a quotation describes. MoneyHelper explains the choices and notes that an annuity usually cannot be changed after its cooling-off period. This definition does not recommend buying one.

Sources: MoneyHelper: Annuities explained

What to record

Keep the quotation date, duration, payment frequency and stated features together in your own records. “Annuity quote received” is different from “annuity purchased”. Ask the issuer about terms you do not understand before giving instructions.

  • Record the issuer and exact quotation label.
  • Keep unanswered feature questions beside the quote.

Sources & review

Next scheduled review: 2027-01-04. Provider details can change sooner. Use the official website for the current contact route.

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