Our Guaranteed Pension Annuity

Introduction

An annuity converts the money you have saved for retirement into a regular income. Buying an annuity needs careful consideration, as it is a one-off decision. Once an annuity has been set-up, it cannot be cancelled.

Hodge Lifetime's annuity, provided by Hodge Life Assurance Company Limited, is designed with simplicity in mind and we aim to offer competitive rates to help you make the most of your money.

Impact of pension freedoms

From 6 April 2015, new freedoms exist as to how you can access your pension. Before purchasing an annuity, it is important that you understand the implications in light of these new freedoms.

You have a number of choices in how to access your pension following the introduction of pension freedoms, and each option has benefits and risks. The important factors relating to the Hodge Lifetime annuity are explained below.

No cancellation rights: If you purchase a Hodge Lifetime annuity, it will be paid as a fixed income for the rest of your life and cannot be cancelled, transferred or cashed-in.

Providing for your family: Unless you select a dependant’s pension or guarantee period, your annuity payments will stop when you die. If it is important to you, you should ensure that, in the event of your death, you have made appropriate provision for your family.

Your state of health: If you suffer from ill-health, or have an impaired life expectancy due to other factors (such as smoking) you should ensure that your pension income reflects this. Alternative providers which offer impaired, enhanced or smoker annuities may offer you a better deal. The Hodge Lifetime annuity does not take your state of health into account in determining the amount of income you are entitled to.

Inflation: If you want your pension income to increase year on year in line with inflation, you should choose an escalating annuity. The Hodge Lifetime annuity is level and so will not increase, but alternative providers may offer escalating annuities.

Pension guarantees: By transferring your pension to Hodge Lifetime to buy an annuity, you may no longer benefit from valuable guarantees that apply to your existing pension. You should check with your existing pension provider or intermediary that this isn’t the case.

If you are unsure how these changes affect you, and your decision to purchase an annuity, you should contact your intermediary before proceeding.

If you don't have an adviser, please refer to our Using An Adviser section for more details.

Next Page: Why choose Hodge Lifetime?