Annuity
How does it work?
An Annuity guarantees a secure income for the rest of your life, no matter how long you live. This is a very attractive option, but any remaining funds cannot be passed on to family. You have the option of choosing an Annuity that increases at a set rate each year, guarantees payment for a specific number of years or can provide a percentage of your income to your spouse after you die.
Options
There are three choices you need to make when purchasing an Annuity:
Single Life
A Single Life Annuity is payable for the rest of your life only. With a Joint Life Annuity, a percentage of your pension is payable to your spouse after you die.
Guaranteed Period
If you choose to include a guaranteed period, your pension will be payable for a minimum of the guaranteed period, even if you die during that time.
Escalating or Level
A Level Annuity means your payments remain the same throughout your life. An Escalating Annuity means your payments increase at a fixed rate each year.
Engaging employees all the way to retirement
Zurich’s bespoke Connect website has a wealth of information to engage employees getting ready to retire. Employees can check if they are on track for retirement, if an Approved Retirement Fund or Annuity might be more suitable for them, and watch some educational videos.
