An annuity is a contract between yourself and an insurer which once entered into, cannot usually be changed.
A conventional lifetime annuity enables you to use some or all of your pension pot to buy a guaranteed income for the rest of your life.
Annuities can provide an income for you and your spouse/partner, and can be arranged to rise with inflation. They can also pay guaranteed sums over a fixed term, or offer increased payouts based on lifestyle factors. Income from an annuity is subject to income tax.
Annuity rates depend on your individual circumstances such as age, health and lifestyle factors as well as the rates available at the time of purchase.