The Aviva pension annuity is a guaranteed annuity because it provides you with a guaranteed income for the rest of your life, which you can choose to be paid at the same level or by an increasing amount each year.

• You can receive your pension income either monthly, quarterly, biannually or annually.
• You can choose an income that stays at the same level or an income that increases each year either by a fixed percentage or in line with inflation (measured against the Retail Prices Index or RPI). If choosing an income that increases each year, your starting income will be lower. The higher the increase level the lower your starting income level. Contact Annuity Arrow for pension annuity quotes.

What is the Aviva Pension Annuity?

The Aviva pension annuity is a retirement income plan, which you buy with your pension fund. The minimum amount you'll need to buy an Aviva pension annuity is £10,000, after you've taken any tax-free cash (“TFC”) or pension commencement lump sum (“PCLS”)

What are the options for the Aviva Pension Annuity?

The options you choose for your Aviva pension annuity will affect the amount of pension income you'll get. If you contact Annuity Arrow, you can get a personal illustration so that you can see the difference the various options make to your pension income. Remember that we also look at other annuity companies to find you the best annuity rate; you may get more by shopping around. The options are:

• Level income. The income will be paid at the same level for the rest of your life.
• Escalating income. Your pension income will increase by a fixed percentage each year for the rest of your life.
• Inflation proof income. Your pension will increase in line with inflation (as measured by the RPI) each year for the rest of your life.
• Dependant's pension. You can choose for a dependant to continue to receive an income after you die and also choose whether this is paid at the same level as your pension income or lower.
• Guaranteed period. You can choose to add a guarantee for up to 10 years. If you die during this period, your income will continue to be paid to your estate until the end of the guaranteed period.
• Payment options. Your income can be made monthly, quarterly, biannually or annually, either:

• In advance. This means that payment of your pension income will be from the start date.
• In arrears. This means that payment will be one month, quarter, half a year or a year after the start date, depending on your chosen payment frequency.

Choose the start and payment date. If you decide to be paid monthly, you can choose to have your pension income paid on a certain date each month. However, the first payment must be within one month of the start date of the annuity plan.

What are the benefits of the Aviva Pension Annuity?

• Guaranteed income. The Aviva Pension Annuity promises to pay you a regular income for life, so it's a low risk option.
• Income choice. Your pension income can be paid at a frequency of your choice; monthly, quarterly, biannually or annually, either in advance or in arrears.  
• Clear transparent charges. All charges for setting up and running your Aviva pension annuity plan are taken into account when your pension income/pension annuity rate is calculated. No further charges will be taken after the annuity commences.

Things to consider before purchasing an Aviva Pension Annuity

• Cash in value. An annuity purchase is an irrevocable decision. Once you have bought an Aviva pension annuity, it has no cash in value or surrender value at any time.
• Your pension annuity ends when you die. This means that you may not receive your money's worth from your Aviva pension annuity if you die soon after taking it out, unless you have included an option so that it continues to your dependant or is guaranteed to pay for a specific number of years.
• Changing your plan. The options you choose at the start of your plan can't be changed once the pension annuity has commenced.