The application process explained
Applying for an annuity is easy, and your adviser/broker will help you do this
We aim to make the process of applying for an annuity with Hodge Lifetime as simple as possible.
The illustrative guide below outlines some steps to follow when approaching retirement to ensure you get the most out of your savings.
6 months before retirement
Your pension provider will send you a pack of information which will tell you what your savings are currently worth. It is important that you read these carefully. Certain policies may offer valuable features on retirement that could be lost were you to transfer your pension elsewhere. If in doubt, consult an adviser or broker.
3 months before retirement
Undertake some preliminary planning. If required, find an adviser or broker to assist you with the process. Obtain a range of indicative annuity quotes in order to understand what level of income you could expect. These indicative quotes will also help you to think about what options are important for your annuity purchase, for example a dependant’s pension or a guarantee period, and whether you wish to take any tax free cash.
1 month before retirement
Ask your pension provider for an up-to-date value of your savings. Use these values to obtain a further set of annuity quotes. Decide on your preferred annuity provider, and submit an application. You will need supporting documents such as your birth certificate or passport, and details of your existing pension savings (such as the provider and policy number).
Apply for an annuity
We will process your application as follows:
- We check the application to make sure we have all of the supporting documentation, and that your quote is valid.
- We write to your pension provider to tell them what level of tax free cash to pay based on what's been entered on the application form, and to transfer the remainder of the pension fund to us. Some providers allow us to do this online.
- We monitor whether your funds have been received, and chase them if we think there is a delay. We normally receive the funds within two weeks.
- The value of the funds we receive could be slightly different to that on which your quote was based, for example if you paid in a further contribution after you submitted your application. We will therefore prepare a final quote before your annuity is put into payment.
- We keep your adviser or broker informed throughout the process in order to ensure that there are no surprises.