Disbursement
With a whole-life annuity, you’ll get a fixed amount every month, regardless of how long you live. This provides you with a steady income and helps take the worry out of running low on money.
With a whole-life annuity, you’ll receive a monthly payout regardless of how long you live. So, you’ll know exactly what you have to live on as a pensioner.
The monthly payout is typically set once a year and remains in effect for 12 months at a time.
You can claim tax relief on all your contributions to a whole-life annuity scheme and contribute as much as you like, if you have a pension scheme through your employer.
If you’re contributing privately, there are some limitations in the last 10 years before retirement.
In our version of a whole-life annuity scheme, your savings are secured until you retire. If you pass away before reaching the agreed retirement age, the value of your savings will automatically be disbursed to your spouse or registered partner. If you don’t have a spouse or registered partner, or they have passed away, the disbursement will go to your beneficiary.
When you want to start the disbursement of your savings, you need to decide what is to happen to your remaining savings, if you were to pass away, before your savings are fully disbursed. You can choose that only you will receive the payout and that it’ll stop if you pass away.
You can also choose to secure the payout for your loved ones for a certain guarantee period. This means that if you pass away after the disbursement has started, your beneficiaries will receive the remaining part of the guarantee period.
Lastly, you can choose to have a spouse’s pension on your whole-life annuity scheme. In this way, your spouse/registered partner will take over the disbursement if you were to pass away first. The disbursement will then continue for as long as your spouse/registered partner is alive. You have the option to combine the spouse’s pension with a guarantee for your loved ones. This way, your children – or other beneficiaries – can also benefit from the money.
It costs a part of your monthly disbursement if you wish to secure your beneficiaries or your spouse/registered partner.
If you would like to review your pension, make changes to your savings or have other questions about your pension scheme, please contact our Customer Centre.
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