About your annuity income
You can change your annual income or take a one-off payment, as long as it’s within the minimum and maximum yearly limits shown in your last annual statement.
Your minimum and maximum yearly income limits are recalculated every three years and may change depending on
- the options you’ve selected
- the income you’ve taken, and
- investment performance.
Your annuity income might change depending on
- the result of the three yearly review of your plan
- changes to your tax code
- changes to your gross payment amount (before tax or deductions).
- We’ll contact you about four weeks before your plan’s anniversary to explain any income limit changes and your options.
- If you weren’t expecting a change to your annuity income, please contact us.
- If you weren’t expecting a change to your tax code, please contact HM Revenue & Customs (HMRC)
Changing your annuity product
- Transfers – You can’t transfer out of the Flexible Lifetime Annuity.
- Guaranteed Income Option – You can switch to a guaranteed income within the Flexible Lifetime Annuity at any time.
The Flexible Lifetime Annuity is designed to offer investment and income flexibility until the plan’s anniversary before your 90th birthday, at which point, we’ll convert your investments into a guaranteed income.
- If you hold With-Profits investments, these can be used to provide an income linked to the performance of the Prudential With-Profits Fund.
- You can convert to a guaranteed income at any time.
- Important: Once converted to a guaranteed income, you can’t switch back. We recommend speaking to a financial adviser before making this decision.
For full details, please refer to your Terms and Conditions.
Changing your funds
- You can change your investment funds any time up to your plan anniversary before your 90th birthday.
- Choose from a wide range of funds and Lifetime Investment Strategies.
For more about changing funds, see the
Things to consider
- If you convert to a guaranteed income, you can’t switch back.
- Changes to your income may have tax implications. For more information please visit our tax page or HM Revenue and Customs (HMRC).
There’s no guarantee that one investment will perform any better than another. So in making your decision, you should consider the following.
- Your comfort with balancing investment risk and reward.
- Your level of investment knowledge.
- How long you plan to stay invested.
- Switching out of some funds may restrict where you can reinvest.
- Switching out of the With-Profits Fund could result in a Market Value Reduction (MVR) reducing the amount switched out.
- Charges may differ between funds.
- In some circumstances your switch instruction could be delayed. We’ll let you know if this applies.
We always recommend you speak to your financial adviser before making any changes to your funds.
Further information
- Flexible Income Drawdown Plan and Flexible Lifetime Annuity flyer shows the bonuses declared this year.
- The impact on your income will be shown in your annual statement.
Next steps
