Our Purchased Life Annuity


Our Purchased Life Annuity is provided by Partnership, who are part of the JRP Group. We offer enhanced products which take into account health and/or lifestyle, for customers where life expectancy might be reduced.

What is a Purchased Life Annuity?

Our Purchased Life Annuity offers you a guaranteed income for life, in exchange for a lump sum of money that is not from a pension fund. Instead, you would use monies from other sources such as money held in your savings account for example, or funds in your ISA, or even using your tax free cash that you may have taken from your pension.

Your health and lifestyle would be taken into consideration when calculating the amount of income that is paid to you, which means you could potentially get a higher level of income compared to an annuity based on a healthy life. 

The Purchased Life Annuity includes options for you to increase your income annually to keep pace with inflation, as well options to pass on the benefits to your loved ones in the event of your death.

How is tax treated on our Purchased Life Annuity?

Tax is subject to change and depends on individual circumstances, but essentially a Purchased Life Annuity contains two elements, known as ‘capital’ and ‘interest’. When you receive your illustration you will notice the income figure is detailed using these two elements. This is because part of your income is deemed to be a ‘return of capital’ which is not subject to Income Tax, and the rest of your income payment is ‘interest’ which is subject to Income Tax.

How can I buy one of these products?

We don’t offer our products directly, however you are able to buy our Purchased Life Annuity through a Financial Intermediary. You can find a professional financial adviser at thepfs.org or unbiased.co.uk