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Irish Life the largest life and pensions group and fund manager in Ireland, employing 2,000 people and servicing one million customers.
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Annuities

Annuities – a pension income for life

What is an annuity?

When you retire, some or all of your pension fund can be used to purchase a lifetime retirement pension which is also called an annuity. The purpose of this pension annuity is to provide an income for the rest of your life An annuity suits those who have a low appetite for risk and demand certainty of income in retirement.

Our Strengths in Annuities

  • Only the State pays more pensions than Irish Life. In 2013 we paid out over €135M to over 30,000 pensioners.
  • We offer the widest range of annuity options in Ireland.
  • Our annuity administration service is highly regarded by customers and pension professionals.
  • Our solvency ratio (stable at 177% at December 2013) provides deep security.

Source: Irish Life

What annuity products are available from Irish Life?

Enhanced Annuity

An enhanced annuity is an innovative product where your income provided is based on your health circumstances. We assess your health through an interactive lifestyle and medical questionnaire completed as part of the annuity quotation process. If you qualify for an enhanced annuity the income provided will be higher than that provided under a standard annuity. Up to 60%* of retirees may qualify for an enhanced annuity and we recommend that all retirees ask their Financial Advisor whether they may be eligible for this product.

*Source Reinsurance Group of America (RGA), based on UK annuity market statistics.

Standard Annuity

The standard annuity will be your option if you do not qualify for an enhanced annuity or you do not investigate the enhanced annuity option at retirement.

Can my income increase while in payment?

Fixed Increases

Under this option the regular income for life is fixed from the outset (either flat or fixed increases apply e.g. 3%p.a.).

  • Advantage: You know exactly the amount of income you are going to receive for the rest of your life.
  • Disadvantage: It isn’t inflation-proof and offers no protection against the effects of higher than expected inflation. As time goes by, its purchasing power may diminish, if inflation exceeds any increase.
Inflation Linked Increases

The income from this type of annuity escalates in the course of payment as Consumer Price Index (CPI) varies. The rate of escalation is usually capped at a maximum rate e.g. CPI max 5% p.a.

  • Advantage: The purchasing power of your income is somewhat protected against the effects of inflation.
  • Disadvantage: Choosing escalation on you income will impact on the initial amount of pension you can expect from your fund. The amount would be less than if you choose a pension with no escalation.

 Additional Options

The following options can be added to any of the above mentioned annuities, at an extra cost:

Dependants' Pension

You can choose for an income amount to continue to be paid to your spouse/civil partner or other financial dependants following your death.

Minimum Payment Period

You can choose to have your annuity paid for a minimum period, for example, five or ten years. If you should die during this period your annuity will continue to be paid to your dependants until the minimum period has expired. The annuity purchased will be lower than an annuity with no minimum payment period.

Taxation

All annuities are subject to income tax in the same way as any other income you receive. They may also be subject to Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) deductions.

Annuity calculator – How do I get an annuity quote?

We offer a unique online annuity calculator www.pensionchoice.ie which allows you to run quotes for your pension annuity.

For more information please contact your company pension advisor, your broker, or Irish Life Sales Support on (01) 704 1845 or email salessupport@irishlife.ie. Alternatively download our guide - All About Annuities

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