LMJ is a firm of independent financial advisers specialising in the management of investment portfolios and pensions. We have been helping clients navigate complex financial markets since 2001 and from those very early days, our business has evolved primarily through client recommendations. Read More

Annuities - an income for life

What is an Annuity?

An annuity is a regular income for life provided by an insurance company. It can be bought with your pension fund or any lump sum. The bigger the pension pot, the bigger the income will be.

What types of Annuity are there?

Depending on your circumstances and requirements, there are a number of different annuities available to you all of which carry specific benefits, including guaranteed periods:

  • Level Annuities
  • Joint Life Annuities
  • Impaired Life Annuities
  • With Profits Annuities

Our team of fully qualified and experienced Professional Financial Advisers will help you with any or all aspects of the somewhat daunting decisions you are making at retirement.

Shop around for an annuity

Individuals can see significant benefits of shopping around for an annuity when it comes time to retire. Taking time to research the best deals can help savers to get the most out of the annuities.

Look at the differences between the most popular annuity options.


For investors coming up to retirement, the Annuity tips are:

  • Shop around, first for the right shape of annuity, then for the best rate
  • Don't delay buying an annuity in the hope of a short term bounce in rates, it may happen but there is no strong reason to expect it.
  • If you want to minimise the risk of buying an annuity at the wrong moment or you hope that asset prices may recover, then consider phasing your annuity purchase

How can I get the best pension annuity rates on the market?
Make the right choice for your circumstances. Use your Open Market Option to find the best annuity quote before making a final decision.

Speak to an Independent Financial Adviser. It's important your financial adviser is independent so they can offer you the best advice to suit your needs.
Consider the effects of inflation. Choose an annuity that will give you increasing income in line with price rises. Although you'll start off with a lower annuity income than if you'd chosen a level rate, you will see your income keep pace with inflation.

APPLY NOW for the very best Annuity Rates. We will find you the best Annuity Rates possible and find the best product to suit your needs.

Level Annuities: A Level Annuity (or 'standard' annuity) pays the same income each year for the rest of your life.

Impaired Life Annuities: If you have health issues or if you are a smoker then you may qualify for an Impaired Life Annuity. A shorter life expectancy results in the payment term becoming shorter and therefore results in a greater income.
Increasing Annuities: An Increasing Annuity protects your income from inflation by increasing each year. You can increase the Annuity either by a fixed rate (usually 3% or 5%) or in line with the Retail Prices Index (RPI) which is the government's measure of inflation.

With Profit Annuities: These investment driven annuities offer a variable income based upon the performance of the invested funds. There is an element of risk attached to these annuities and the income you receive can go down as well as up.

Single Life Annuities: An annuity that will provide payments to yourself only. Therefore, payments cease when the annuitant dies.

Joint Life Annuities: A Joint Life Annuity will continue to pay an income to your spouse when you die. This income will be a set percentage of the amount you both receive whilst you are alive.

David Simmonds Financial Advisor IFA East Peckham


LMJ Financial Management Ltd

Upper South Hall
Bullen Farm Business Centre
Bullen Lane

East Peckham
Kent, TN12 5LX

Tel: 01732 874111
Fax: 01732 874222

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LMJ Financial Management Ltd, Upper South Hall, Bullen Farm Business Centre, Bullen Lane, East Peckham, Tonbridge, Kent, TN12 5LX
Tel: 01732 874111 Fax: 01732 874222 Email:

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