Pension annuities provide a guaranteed income for life. They can include benefits such as indexation, spouses pension, enhanced rates due to lifestyle or medical history, and a guarantee period. Up to 25% tax free cash can usually be taken if required. Income from the pension annuity is taxable as income.
Until recently most Money Purchase pension plans bought an annuity at retirement. Recent pension reforms have made pension annuities less popular. However, the guaranteed income they provide will be most suitable for many people.
Pension plans normally offer their own annuity contract at retirement. It is often possible to obtain a higher income by considering all providers. Where an annuity is suitable for a client’s needs we provide whole-of-market, independent research to ensure the best income in retirement. We deal with the providers and set up the plan to make the process as easy as possible.