There are a number of options for you to consider when choosing an annuity, each of which can affect the level of income that you will receive in retirement.

One of the most important aspects is being able to draw up to 25% of your pension savings immediately as tax free cash. The remainder can be used to buy an annuity, proving a regular income at intervals that you determine.

Annuities come in two main types of annuity. A conventional lifetime annuity is the most popular choice as it guarantees you a secure income for life. The amount you receive can be fixed or can increase over time. You will have to decide at the outset what you would like to do to enable you to budget your lifestyle.

The other option is an investment annuity which is linked to the stock market. As with all stock market investments, there comes an element of risk and your income is less secure. You do however have more flexibility. Should this particular area interest you then I would strongly urge you to discuss this with one of our annuity specialists.

Types of pension schemes that you are able to convert to an annuity:

• Stakeholder pension
• Group personal pension
• A defined contribution pension with your employer
• A free standing additional voluntary contribution scheme
• Retirement annuity contract
• A Personal pension

With all of these contracts its best to speak to a specialist adviser to ensure that you are making the best and most suitable choice for your circumstances. The main reason for this is because once you have made your choice dependant on what you choose it can not be amended.