So this calculator shows how much of an initial reduction you are likely to face if you stray from the default Annuity option offered. Which is usually;
Single Life, Level Annuity with a 5 year guarantee.
Single – It dies with you. Nothing for her indoors, or hubby after you have gone.
Level – Prices will go up over time but this annuity won’t. What you receive today will be the same in the future even when beer reaches £8.00 a pint.
5 Year Guarantee – Your pension lasts as long as you do. Unless you walk under a bus soon after retirement. In this case her indoors/hubby continue to receive an annuity for no more than 5 years from the date you started the annuity.
The small print
The figures quoted above were correct as of May 2015. They were taken from a comparison website called theMoney Advice Service. It is run by the UK financial regulator so we should be able to trust its findings.
- This calculator has not be created to enable you to purchase an annuity with your pension.
- This calculator is not a substitute for taking financial advice from a professional.
- We accept no liability for any tax you may pay, or indeed any loss you may suffer, as a consequence of using this calculator.
Now you know how much you an annuity which suits your current circumstances would provide per year, you probably would want to know how long flexible drawdown would last before your pension fund runs out as an alternative course of action. Click here to find out.