Guaranteed Period

You can choose a guaranteed period of between 0 and 10 years. If, for instance, you choose 5 years then the annuity/pension would be paid for a minimum of 5 years, or for your lifetime. If the person receiving the annuity died after year 2, the annuity would be paid for another 3 years after death.

Escalation

You have the option of increasing the level of annuity/pension you will receive in future years. You might exercise this option if you wanted your pension to try and keep pace with inflation. 

Single(First) or Joint (Second) Life

You can elect to have the annuity/pension payable to just one person or you can arrange for it to be paid to your spouse/civil partner, following your death.

Reversion Rate

This refers to the percentage of the annuity/pension that the second life would receive in the event of the death of the first life. For example, this could be 50% or 66.67% of the first life annuity/pension.

Payment In Advance/Arrears

Payment in advance/arrears refers to receiving the annuity pension payment at the start or end of the month.

Overlap

If Overlap applies, should you die within the guaranteed period, your pension will continue until the end of the Guaranteed Period. At the same time your Spouse/Civil Partner’s pension will begin and continue for the remainder of their lifetime.