Annuity Rate

Annuity Rate

The annuity rate is the equation used to convert an accumulated pension fund into a regular income in retirement.
The factor used in this equation will depend on the type of annuity that is being bought, for example whether it is single or joint life, level or increasing each year, as well as your age and health. Annuity rates vary between providers, so it is best to shop around for the best rate before buying an annuity. Annuity rates can also be affected by interest rates, inflation and the return on Government bonds.

If you haven’t found all the answers that you are looking for you can find similar content in the
Pension Glossary sections, contact an adviser at the top of the page, or you could try these related posts:

Defined Contribution Scheme
Also known as a money purchase scheme, with a defined contribution scheme the member (and employer if appropriate) makes contributions to a pension fund. This fund…
What is an Annuity?
What is an annuity? A simple explanation is to say that annuities are investments designed to safely convert pension money into regular taxable income. The most…
Level Income Annuity
This effectively means your income will never change for as long as the annuity is valid. It is up to you whether you want a lifelong policy or a fixed term between…
Money purchase pensions
There are two different types of pensions in the UK – defined benefit pensions and money purchase pensions. The first of these is salary-related, so it only available…
Group Personal Pensions
Sometimes a small employer wants to offer pension provision for their staff, but their size does not warrant a large defined contribution scheme. In these cases…