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Compulsory Purchase Annuity

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Overview

Only available to Standard Life pension customers.

A compulsory purchase annuity can only be purchased with the proceeds of a Standard Life pension plan. It provides a guaranteed income for life and can be used with a drawdown plan as part of a wider retirement income strategy.

Age limits

The minimum age for a compulsory purchase annuity is normally 55.

Purchase price

If the pension plan is already invested with Standard Life, there is no minimum or maximum purchase price.

Options

Options available with Standard Life annuities include:

  • Income payment frequency – monthly, quarterly, half yearly or yearly
  • Payment start date – in advance, the first payment is made as soon as the annuity is set up, or in arrears, the first payment is made one 'payment period' after the annuity is set up
  • Increasing annuity – by a fixed percentage, up to 8.5% a year
  • RPI Linked - increasing and decreasing in line with the change in the Retail Prices Index
  • Spouse, partner or financial dependant's pension – payable if the annuity holder dies before their spouse/civil partner or financial dependant
  • Guaranteed payments – for up to 10 years.

Charges


There are no express charges for Standard Life annuities. All costs and expenses are accounted for in our annuity rates.

Income tax

Income payments under the annuity are taxed under the Pay as You Earn (PAYE) system.

More information on the HM Revenue & Customs website


More information on secured pensions - lifetime annuities

  • Guaranteed regular income - for the rest of their life
  • Flexible payment options – monthly, quarterly, half yearly or yearly
  • Options to provide for dependants - spouse/civil partner or financial dependant on death
  • Income options - Level, increasing or RPI linked
  • All

    charges are accounted for - in our annuity rates

  • Help your corporate clients (scheme trustees) - to secure retirement income for their members
  • Entry level - no minimum purchase price for pension funds already invested with Standard Life

Adviser Payments

Commission is available in respect of non-advised annuity sales only.

Commission for Compulsory Purchase Annuities is 1% of the purchase price plus uplift. You can sacrifice commission to obtain an improved rate for your client.

Adviser Charges

We also offer the facility to pay adviser charges in respect of annuity sales. This charge can be paid as an amount or a percentage of the client's annuity purchase price.

Please note that we do not facilitate the payment of adviser charges on any contract which contains an element of Guaranteed Minimum Pension, or has a Guaranteed Annuity Option/Rate.

E-Commerce Services

  • Adviser statements – view, print and download in CSV or PDF formats
  • View payments due by agency or plan
  • View payments paid by agency or plan

More on Adviser Payments

Integration Services

We are able to integrate a number of our online services with your front/back office system which enables you to streamline your business processes and helps you deliver a quality proposition to your clients.

More on Integration Services

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The information on this site is for qualified financial advisers and must not be relied on by anyone else. If you are not an adviser please go to our customer website for more information about our products and services.


Category: Annuity

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