• Upto 70% can qualify for enhanced annuities. 
    Not all companies are the same…

    Pension Annuities Direct

A fixed term annuity enables you to put off the final decision about your pension income to a later date.

  • You can normally take your tax free cash if you haven’t already (normally up to 25%)
  • You can decide what level of income you would like
  • It is possible to have a Fixed Term Annuity without taking an income, this would enable you to take your take free lump sum and keep the remained of the pension invested in secure funds

With the remainder of your pension fund you will receive a Guaranteed Maturity Value (see below)

You can set the term of your Fixed Term Annuity for a period of more than 3 years and normally the return on this investment is better the longer the period it is invested for.

Fixed Term Annuity Quote

Step 1 of 2


  • How many years do you want guaranteed? From 3 Years **
  • ** 3 years = Guaranteed drawdown

  • eg. Value Protection

Guaranteed Maturity Value

This provides you with the peace of mind in knowing what your pension fund will be worth at the end of your chosen plan term. The provider takes into account the cash left after both your tax free cash and income is taken and decide what level of return they are willing to guarantee over the plan term. The risk on this is taken by the provider as you have a guaranteed maturity value.


Points you need to consider:

Once you have agreed the basis of your fixed term annuity it is not normally possible to change. Some providers do allow these types of arrangements to be changed in the event of changes in health, marital status or death of a partner. We know which provider offers these various options so call us to discuss.

The term obviously expires at the end of the term you have chosen where you can use the Guaranteed Maturity Value to buy another pension product either in Drawdown or an Annuity. 

This product may not be suitable for you if you would like to:

  • Buy a product that offers a Guaranteed Income for life now
  • If you are likely to want to change your income during the term of the Fixed Term Annuity.
  • Believe that you could improve your pension funds performance through different investment routes in the future.

Death Benefits

To obtain the full death benefits of a drawdown product you will need to take out plan protection along with the Fixed Term Annuity. The full death benefits are listed below. 

 April 2015 pensions in drawdown are taxed differently depending on the age of death. There are different rates of tax for beneficiaries if someone dies before the age of 75 or after 75.

The nominated beneficiaries in most cases benefit from the full amount remaining in the drawdown pension. The nominated beneficiaries can include children and you could for example nominate your spouse to receive 80% and your children to receive 20% of your pension. Your spouse on their death can leave whatever is left of her pension (your old pension) to again any nominated person therefore your pension can be handed down through the generations until there is nothing left. To access the pension, once left to you there is no age requirement.    

The differences and options are highlighted below:

The options for someone who died less than 75 years old

  • Take the pension as a tax free lump sum. Any beneficiary can take the full value of their allocation of your pension tax free. They do not need to be over 55 years old.
  • They can continue to take a pension income from their own drawdown pension tax free again irrespective of their age.
  • They can take the remaining pension and convert it to an annuity, again this is tax free income as above. 

The options for someone who died 75 years or older

  • Take the pension as a lump sum. This is subject to tax at the beneficiaries marginal rate. Again this can be taken at any age.
  • They can continue to take a pension income from their own drawdown pension and this will be subject again to tax at their marginal rate. 
  • They can take the remaining pension and convert it to an annuity, again this is taxed at their marginal rate.


Pension Annuities Direct

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0845 576 01 02

It can be a lot easier to talk
through what you would
like, so please feel free to
call one of our specialist
team to discuss your
pension annuity.

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training and quality purposes.

Case Studies

  • Mr T earned 21% MORE Pension Income

    Mr T was 55 years old and had a pension pot of £200,000. He wanted a single life annuity with a guarantee on the policy but no escalation. He has some lifestyle conditions and health issues, he is a heavy

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  • Mr H earned 29% more pension income

    Mr H was 60 years old and had a pension pot of £30,000. He was a smoker and is taking medication for Cholesterol, although his readings were fine and he also suffered with vertigo. He wanted a single life annuity

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