If you select a single life annuity, the annuity will be paid for the remainder of your life and then payments will cease. This is a standard quotation which will be provided by Prudential at the time you retire.
If you decide to purchase a joint life annuity, part of your fund is used to provide a spouse pension in the event that you die before your spouse. The amount of contingent spouse benefit will depend on the level you select. For example you may select an annuity for your spouse which is half the rate of your annuity provided this is within HM Revenue and Customs limits. The cost will depend on the age of your spouse. For example if you spouse is much younger than you then the cost will be greater than for someone with a spouse who is the same age or older.
In the event that your spouse dies before you then the amount of fund given up to provide them with a benefit will not revert back to you.
If you are interested in a joint life annuity, you will need to ask your Local Pensions Officer of the Pensions Administration Office, Thurso to obtain a quotation from Prudential. (In order to produce the quotation, Prudential will need to know your spouse’s date of birth and to have some idea of the level of contingent spouse benefit you wish to provide.)
AVC annuities do not normally increase whilst in payment. If you wish to have an escalating annuity you will need to ask your Local Pensions Officer or the Pensions Administration Office, Thurso to obtain a quotation from Prudential. You will need to indicate by what percentage rate you wish the annuity to increase. You should be aware that if you purchase an escalating annuity the initial amount of annuity will normally be less than a non escalating annuity.
These are fluctuating annuities which follow market trends. You are advised to seek independent financial advice before deciding to purchase this type of annuity.
This is a temporary annuity which is payable between the time you retire and the State Pension Age.
Once purchased the rate of the temporary pension remains unchanged whilst in payment. For further details regarding the State Scheme Spreading Option click here
At retirement for members below State Pension Age Prudential produce a State Scheme Spreading Option quotation as standard along with the single life annuity quotation provided you have more than a year to State retirement age.
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