Immediate life annuity

Guaranteed income for life

  • You can choose to ensure your annuity is paid for up to ten years after your annuity starts, even if you pass away within the guarantee period
  • There are no hidden costs or fees once your annuity is set up
  • You decide when you want to be paid

What is an immediate life annuity

If you're between 55-95, invest at least £7,500 as a one-off payment using your savings or tax-free cash from a maturing pension scheme. In exchange, we'll guarantee a steady income to you and any joint policyholders (annuitants), and potentially your beneficiaries if you pass away within the guarantee period.

  • Choice of income payments

    Decide whether you want to be paid every: 

    • month

    • three months

    • six months

    • twelve months

  • Guarantee income after death

    You can choose to guarantee an income for a set period. This could mean your family or other beneficiaries continue to get paid, according to the terms agreed, even if you pass away during this guaranteed period.

  • No Hidden Fees

    We won't charge extra once your annuity's started. When we work out your income, we'll factor in our costs from your investment. However, if we need to rewrite the policy after setup, we might charge £40.

  • Risk

    Once your annuity starts, you can't make any changes to it or cash it in. If you're looking for flexibility, buying an annuity wouldn't be the best option. As an alternative, consider investment bonds, an ISA or other non-pension savings and investments that can give you an income.

The different annuity options you select will have an impact on the income you receive.

Already have a pension with us?

How it works in practice

If you decide to open an immediate life annuity, you’ll need to talk with an independent financial adviser. They’ll explain everything in more detail if you decide to go ahead. Here are a few tips to get you started. 
  1. How the income works 
    We’ll pay you an income for as long as you live, and to your beneficiaries if you pass away during the guaranteed period.
  2. How paying in works
    - You'll need at least £7,500 after adviser charges if you're paying for this yourself.
    - If someone's buying the annuity on your behalf, such as the trustees of a will, they'll need at least £100,000 after adviser charges.
  3. The amount we’ll pay depends on
    - your age
    - interest rates at the time
    - the amount of the single payment when opening the annuity
    - whether you choose a fixed income or annual increases
  4. How flexible is this annuity policy?
    - Payments from an annuity may be made
        • for your lifetime only 
        • for yours and an additional annuitant’s lifetime
    - You can choose to receive smaller payments at the start, which then increase by 0.5% to 5% annually.
    - You can decide at what stage of each of the periods you’d like to be paid. For example, at the start of each month, or the end of every quarter.
Portrait of an elderly woman

Things to be aware of

If you take out one of our immediate life annuities.

Guarantee period

We offer a one-year guarantee period as standard, though you can extend this for up to 10 years. So, if you or other annuitants die after 90 days but within the guarantee period, we'll continue to pay out to the other annuitant or those named in your estate until the guarantee period ends. Depending on how long your retirement is, you may receive less in payments than the amount you paid for the annuity.

Value protection

If you (and other annuitants) die within 90 days of the plan's start date, we'll pay the annuity's value (minus any payments already made) to your estate or the estate of the last policyholder to die. This payment will include any guarantee period payments.

Changing your mind

You get 30 days to cancel your immediate life annuity once we’ve told you it's started, but you can't cash in this plan at any time. We’ll include a cancellation form within your confirmation pack. You'll have to return any income payments you've already received if you decide to cancel. 

Tax implications

Our immediate life annuity may be taxed differently from pension annuities. So, with a self-funded plan, you'll likely only pay taxes on the interest earned, not on the repayment of the initial investment. Tax rules are subject to change and depend on individual circumstances.

Ready to get started?

You can get free, impartial guidance on your retirement options from the government-backed Pension Wise from MoneyHelper. An independent financial adviser will give you advice based on your own individual circumstances, and help you buy one of our annuities if you decide to do so.

Independent Adviser

When seeking financial guidance, it's essential to choose an independent adviser. Unbiased.co.uk offers a convenient platform to find qualified professionals in your local area, enabling you to make informed decisions with confidence.

Find an adviser

Aviva financial advice

If you’d like support with your pension or retirement, Aviva Financial Advice can help.

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More options at retirement

We've got a range of retirement options that could be right for you. Follow the links to find out more about how these work, their benefits, risks and costs.

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Income drawdown is a flexible way of using your pension - whenever you want.

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Know exactly how much money you’ll get with our annuity that gives you a guaranteed income for the rest of your life.

Equity release

If you're a UK homeowner aged over 55, our lifetime mortgage is a way of borrowing money against your home. You can even safeguard a percentage of your home's value to pass to your loved ones, although this will reduce the amount you are able to borrow.