Annuity service

How much annuity income will be paid to me? 

The income you receive from your annuity will depend on a number of factors. The larger the fund available to purchase an annuity, the greater the level of income achievable.

The Saga Annuity Service Income Calculator will enable you to see what rates are currently available to you depending on your circumstances and the payment options you choose. Please remember that this is only an indication of the rate you could receive. if you would like a personalised quote please call the Saga Annuity Service on 0800 046 2872. Lines are open 9am-5pm Monday to Friday. Calls may be monitored and recorded for security and training purposes.  Call charges will vary.

However, this is not the only aspect to be considered. Other factors that are considered are:

Your age

Your age when you initially take out your annuity is also a very important factor. The younger you are when you take out the annuity the longer the insurance company will expect to pay you.

Your sex

Men tend to be offered a higher level of income than women as women generally live longer.

Your state of health

If you suffer from some fairly minor health or lifestyle conditions, such as high blood pressure, high cholesterol, diabetes, you smoke or are overweight, you could receive a higher income. If your conditions are more serious you may be eligible for an even higher uplift. The Saga Annuity Service will automatically ask you some questions when you enquire to see if they can get you more income in retirement

Investment market conditions

Different annuity providers will have different ideas about future investment returns, which will affect the rates they offer. It’s always a good idea to shop around and get the best deal for you.

Cash lump sum

You can normally take up to 25% of your pension fund as a cash lump sum, which is usually tax-free. The remainder of your fund will then be used to buy an annuity. The more cash you take, the smaller the annuity and so the lower the annual income you will receive.

The payment options you choose

The additional features, such as guarantee period, payment increases etc, will affect the level of income you receive. To find out more click here.