Lifetime annuities

• to pay out to your spouse or partner on your death; or
• an enhanced or impaired life annuity, which may give a higher income than a conventional annuity if you have an illness or medical condition, or are a smoker.

• The amount in your pension fund after taking any tax-free cash. You must take any tax-free lump sum before your 75th birthday.
• Whether your fund includes national insurance rebates because you contracted out of the additional State pension – you must buy a 50% spouse's pension with funds arising from national insurance rebates if you are married or have a civil partner.
• Your health or lifestyle – some annuities pay you a higher-than-normal income if your health or lifestyle threatens to reduce your lifespan.
• Your age – the older you are the higher the income you get will be. This is because, on average, an older person has fewer years left to live than a younger person.
• But because people are living longer, annuity rates are adjusted from time to time to reflect this. So if you delay buying your annuity you could be taking a risk. And of course rates may rise and fall for various reasons.
• Your sex – usually the starting income from the same size of pension fund is higher for a man than for a woman, of the same age. This is because, on average, the life expectancy of a man is less than a woman of the same age.
• The benefits you choose, for example:
• whether the annuity is for you, or for you and your spouse or partner – see Single or joint-life lifetime annuities; or
• if the annuity is level or escalating – see Level or escalating lifetime annuities; or
• if it is guaranteed to pay out for a minimum number of years, even if you die during that time – see Protecting your annuity.