For Customers
What is a Pension Annuity?
A pension annuity is simply a way to convert your pension fund into income for the rest of your life. You have the choice of taking any tax free cash you are entitled to before the annuity is set up. At any point in time an older person will receive a greater income than a younger person for each £1000 converted. The general level of annuity rates fluctuates from time to time. The income payment is determined at outset and guaranteed throughout your lifetime. The annuity can be for a level amount or it may increase each year, e.g. by 5%. Your income will be paid regularly direct into your bank account.
What do I need to know?
Converting your pension fund into an income for life is one of the most important decisions you will take in your life. We therefore recommend that you consult an Independent Financial Advisor who will advise you on the best option for you. This will include whether you have access to a guaranteed annuity rate option with your existing pension savings scheme or whether you should consider the "open market option", where you may transfer your funds to another pension annuity provider. There are also other ways you should consider to draw your pension. Further information is available via the FSA website for consumer information.
How do I proceed?
To be eligible you must be a UK resident and meet our smoking criteria. If you and your financial advisor agree that the Reliance Mutual enhanced annuity for smokers is the right choice for you, your financial advisor can find the necessary forms for you to complete, sign and submit on this site.
Once your application is accepted we will send your annuity policy document to you, and start payment direct to your bank account.
Cancellation Rights
Once you have received your first illustration from Reliance Mutual you will have 30 days in which to think about whether you want to proceed. We will not start processing your application if it is received within this 30 day period, so that you have time to decide.
Once your annuity is set up you will not be able to change your mind.
Financial Services Compensation Scheme
Reliance Mutual has always met its annuity commitments. In the unlikely event of us not being able to do so in the future, your interests will be protected by the Financial Services Compensation Scheme (FSCS). There are maximum levels of compensation you can receive under the Scheme. You will normally be covered for 90% of payments due under your annuity. For further information you can contact the FSCS helpline on 020 7892 7300 or visit their website at www.fscs.org.uk.