The Personal Pension is a monthly retirement paycheck that offers you a guaranteed and consistent stream of income during your retirement years that lasts as long as you do. It’s the next best thing after an employer pension.
Both the Personal Pension and a traditional income annuity guarantee lifetime retirement income, but there are some key differences between the two.
Similar to a traditional income annuity, the Personal Pension is a contract between you and an insurance company where the money they promise to pay you is not only guaranteed, but is given to you for the rest of your life. Unlike any market investment, annuities provide longevity protection so you don’t outlive your savings.
The Personal Pension requires a $5,000 starting contribution. That $5,000 turns into a future guaranteed retirement paycheck at a rate based on your gender, age, and when you want your pension to start. You can continue to contribute voluntarily, with as little as $100 a month. You can change your contribution size and schedule whenever you want.
The Personal Pension does not have any cash value, which means you can’t surrender or withdraw from it. It is made up of income annuities that, unlike investment annuities, offer only a guaranteed lifelong retirement income. Because you can’t surrender or withdraw your money, insurance companies are able to offer better rates.
Your Personal Pension is guaranteed by our insurance partners — the highest-rated, oldest, and most reliable in the business. They guarantee that for every dollar you contribute, you will receive a monthly retirement paycheck for life.