WHAT ARE ANNUITIES?

As a minimum a pension that is provided from a pension fund must continue to be paid as long as you are alive.  If you choose to buy an annuity (Purchased Life Annuity, PLA) with money that has not come from a pension fund then you can choose a specific length of time for the annuity to be paid for or you can choose an annuity that will be paid until you reach a set age.

The largest annuity you will get for a given sum of money will be one that is a level annuity paid annually in arrears, without proportion and without guarantee.