Let Us Explain

What Is An Annuity?

  • Home
  • /
  • What Is An Annuity

Got Questions?

Pension Access Can Be Complex: We Can Clearly Explain All Your Options.

When it comes to accessing your pension, terms like Annuity, ARF & Tax-Free Lump Sum can be tricky to understand.  We deal with these terms every day and can quickly figure out what option is best for you and your family. We can help you “Get This Right”.

What is an Annuity?

An annuity is a retirement product that provides you with a guaranteed income for life in exchange for using your pension fund to buy that income. Once purchased, the income is fixed (unless you choose an increasing annuity) and continues for as long as you live.

An annuity is designed for individuals accessing their pension who prefer certainty, security, and a predictable income in retirement. 

Key Features Of An Annuity

Best consulting wordpress theme

01.

Guaranteed Income For Life

Once purchased, your income is guaranteed and will not run out, regardless of how long you live. You cannot outlive your Annuity Income.

02.

Fixed Or Increasing Income Options

Choose a level (fixed) income or one that increases annually to help combat inflation. Your income is secure and predictable.

03.

Options For Your Spouse

You can choose a joint-life annuity, ensuring your spouse continues to receive income after your death, but at a reduced rate.

04.

No Ongoing Investment Risk

Your income is secure and not affected by volatility in global investment markets.

Disadvantages Of An Annuity

Things to
consider

Best consulting wordpress theme

01.

Your fund is gone once you buy the annuity

This cannot be reversed.

02.

Poor value in low-interest-rate environments

Rates determine your income.

03.

Income may not keep pace with inflation

Unless you choose an increasing annuity.

04.

Little to no inheritance benefits

Most annuities stop when you die, unless specific options are added.

05.

Typically lower income

Compared to flexible ARF withdrawals (depending on markets and rates).

An annuity may suit you if you:

Prefer certainty of income over flexibility of income

Have very few
other reliable income sources

Want an income that never runs out, regardless of lifespan

Value stability and predictability, and guaranteed income

Do not want
to manage
investments

Tax Implications of an Annuity

Annuity payments are treated as taxable income

Your tax rate depends on your overall income & personal tax credits.

On our page ARF vs Annuity, you can study the comparison and difference between an ARF and an Annuity.

What Annuity rates depend on

What affects how much
income I get?

Best consulting wordpress theme
0
age
0
Amount in Pension Fund
0
Health
0
Options chosen (e.g., spouse’s pension, increasing with inflation)
0
Interest Rates

Insurance Companies we work with:

As a registered financial services pension broker, we provide advice and work with multiple insurers to ensure our clients receive the best possible retirement plan. We work with providers such as Zurich, Irish Life, Aviva, and New Ireland Assurance, along with many more.

trusted experts

Our Team Members

We know that planning to access your pension is a very important, if not one of the most important, and personal decisions you’ll ever make. We’re passionate about keeping our approach clear and concise and giving our clients the support and guidance they need when it comes to Pension Access and Tax Advice.

Michael Coburn

Pension, Tax & Investment Specialist

Jim
Doyle

Owner &
Director

Joanne Fenelon

Communications Manager

Kelly
Keane

Financial
Advisor

Evan Rowan

Financial Administrator

Success Stories From Our Clients

Declan - Doctor of own Practice

Drawing down my Pension was a big financial decision and I was very happy I chose Guardian Wealth. Michael clearly explained my options to me and dealt with my insurance company to make sure it went smoothly. I now meet with Michael every year to make sure my retirement plans are on track. I have no hesitation in recommending Guardian Wealth.

DeclanDoctor of own Practice
Ian  - Co Meath- referral from a Friend

I have been receiving advice from Jim Doyle in Guardian Wealth for 3 years. I was advised by a friend to use Guardian Wealth and so I contacted them when the time came to access my pension. Jim has been very good to me and has given me great advice over the years. He keeps in touch to give me updates on my pension and he is always available by phone if I have any questions. I am delighted that I am dealing with Guardian Wealth. They are a professional outfit and very straightforward to deal with.

Ian Co Meath- referral from a Friend
Liam  - Semi Retired Solicitor

ARF Ireland managed to achieve a good return on my ARF investments without me having to take too much risk. They continue to update me on the progress of my ARF and I now see them as a very important to my financial planning needs.

Liam Semi Retired Solicitor
David - Retired Company Director (I.T.)

I had a number of pensions that I was ready to drawdown but I was very confused as to how I should do this, and what I needed to do. ARF Ireland took control of the process for me and dealt with my existing pension providers to get me my tax free lump sum from the pension, and also set up my ARF & AMRF.

DavidRetired Company Director (I.T.)
Joe - Retired Pharmacist

ARF Ireland differentiated themselves from the competition early on. They listened to me and tailored a plan suited to my needs. By engaging with them I was able to build an ARF investment strategy that I feel comfortable with and also kept fees to a minimum. I have also found them to be very client focused and willing to go the extra mile for me.

JoeRetired Pharmacist
Patrick - Dublin

Many thanks for all your help in making my drawdown so seamless. I have to say I thought you did an excellent job and I am lucky to have landed on your website when I first started looking for someone to help me on this.

PatrickDublin
Conor - Retired GP

As a conservative investors, ARF Ireland created an ARF investment portfolio for me that gives the potential for reasonable growth during periods of financial market highs but also protects me from periods of market turmoil…they have also always fulfilled their initial promise to me to review my ARF with me on a regular basis.

ConorRetired GP
Things We Get Asked

Questions and Answers

An annuity is a product that provides a guaranteed income for life in exchange for your pension fund.

Yes, unless you choose an increasing annuity, which rises annually to help with inflation.

Yes, but only if you choose a joint-life annuity so your spouse continues to receive income after your death.

No. Once purchased, an annuity is permanent and cannot be reversed.

news

Latest Articles

Would you like A simple, obligation-free call to understand your options clearly?

Talk to an ARF Specialist today