Annuities

A lump sum payment providing income for life

If you have money saved from a pension fund or an investment, you can use it to purchase an annuity, which will provide you with a monthly income for the rest of your life. Dunfermline Building Society, through Norwich Union, offers annuity options and an advisor can help you choose which option is best for you.

It is possible to have an annuity from investments, but most come from money saved in a pension fund. An annuity is a contract you purchase with a lump sum which then provides a regular income for the rest of your life.

Once you have bought the annuity and payments begin, you can’t normally cash it in or alter it. The amount of annuity you can buy with your pension fund will depend on whether you’re male or female, how old you are when you buy it, the prevailing interest rates at the time, and the type of annuity it is.

There is a range of options available in the marketplace, you should speak to an adviser for further information.

Any financial advice given will relate only to the products and services of the society and Norwich Union.

Government rules about pensions and retirement income have changed, which means that there are more choices around the way you may take your income and more flexible options available. For further information, it’s worth speaking to a financial advisor.

 To find out more, telephone Dunfermline Direct on 08457 33 66 88 or contact any branch - click here to find your nearest branch.