Annuities

Compare our Annuity plans

Contact us

For new policy enquiries or financial advice on our products please call

0800 056 1643

If you are an existing Annuities customer, please call

0800 068 6800

For our joint protection, telephone calls may be recorded and/or monitored

If you're not sure which type of annuity to choose, have a look at the table below. It compares the various options that are available with Norwich Union's annuity plans to help you work out which one is best for your own personal circumstances.

Helping you choose your annuity

Find out more about the four different types of annuity offered by Norwich Union:

Pension Annuity and Enhanced Pension Annuity With Profits Pension Annuity Immediate life Annuity
Our Pension Annuity pays a guaranteed income for the rest of your life, which you can choose to be paid at the same level each year or increase each year by a fixed percentage or in line with inflation measured by the Retail Prices Index. Our With Profits Pension Annuity provides the potential for your pension income to grow in retirement through investing in the With-Profit fund. Your income may go down as well as up. The income will be paid for the rest of your life. Our Immediate Life Annuity pays a guaranteed income which you can choose to be paid at the same level each year or increase each year by a fixed percentage. The income will be paid for the rest of your life.
Source of Money Pension Annuity and Enhanced Pension Annuity With Profits Pension Annuity Immediate life Annuity
Your pension fund Available Available Not available
Cash lump sum Not available Not available Available
Minimum purchase amount (after tax-free cash (if any)) £10,000 £20,000 £7,500
What options are available? Pension Annuity and Enhanced Pension Annuity With Profits Pension Annuity Immediate life Annuity
Level income Available Not available Available
Yearly increase by a fixed percentage Available Not available Available
Yearly increase in line with increases in the Retail Price Index Available Not available Not available
Dependant's Pension Available Available Available
Guaranteed Period Available Available Available
How is it taxed? Your pension will be treated as earned income and taxed according to your personal circumstances. Your pension will be treated as earned income and taxed according to your personal circumstances.

Your payments are normally split into two parts:

  • A ‘capital part’ - which is tax-free
  • An interest part which may be taxed at the basic rate of 20% depending on your personal circumstances.
How frequently is it paid? Pension Annuity and Enhanced Pension Annuity With Profits Pension Annuity Immediate life Annuity
Monthly Available Available Available
Quarterly Available Not available Available
Half-Yearly Available Not available Available
Yearly Available Available Available
Charges and flexibility Pension Annuity and Enhanced Pension Annuity With Profits Pension Annuity Immediate life Annuity
What are the charges? Charges are taken into account when we work out the price of the pension income. No further charges will be taken from your pension fund. Charges are taken into account when we work out the initial pension income and when we decide the bonuses to add to your pension each year. Charges are taken into account when we work out the annuity income. No further charges will be taken.
How flexible is it? The options you choose at the start of your plan cannot be changed and once you have bought your annuity it has no cash in value at any time.

At any time after the first year you can:

  • change your Anticipated Bonus Rate within our limits at the time.
  • convert your plan to an ordinary Pension Annuity.

In both cases we'll recalculate your pension

The other options you choose at the start of your plan cannot be changed and once you have bought your annuity it has no cash in value at any time.

 The options you choose at the start of your plan cannot be changed and once you have bought your annuity it has no cash in value at any time.

Ready to take the next step?

We want you to make the right decision when you choose your annuity, so we recommend you speak to a financial adviser. If you don't have an adviser, you can find one in your area at www.unbiased.co.uk

Want more help?

Our team of expert advisers will be happy to give you a personal illustration with different options so that you can see the difference they make to your pension income. Please remember that our advice relates only to Norwich Union products. If you'd like information on other providers' products, you should speak to a finacial adviser.

Talk to one of our advisers on 0800 056 1643*

* Lines are open Monday to Friday 8am - 9pm, Saturday 9am - 5pm and Sunday 10am - 4pm. Calls may be recorded and/or monitored.

WC01038 09/2008