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With-Profits Annuity

Your With-Profits Pension Annuity gives you a regular income for life. 

How your annuity works

Your With-Profits Pension Annuity is linked to the Prudential With-Profits Fund, so the amount you receive each year isn’t guaranteed.

When you start your annuity, you choose an Anticipated Bonus Rate (ABR) within set limits – this determines your starting income and influences future income. Your income may change each year based on bonuses we declare, meaning it can go down as well as up. However, your income will never fall below a minimum amount, regardless of future bonuses. This is known as the minimum income guarantee. The amount we guarantee depends on your chosen ABR.

Managing your annuity

On any plan anniversary and then once every three years, you may have the option to change your income by amending your ABR.

You may also be able to switch to a Guaranteed Pension Annuity (GPA). 

Before you make any changes:

  • Please make sure you understand your options and how they might affect your plan.
  • Check your annual statement. It will confirm if changing your income is available, show the range, and explain how to make the change.
  • We recommend you get financial advice. See ‘Getting financial advice’ for more information about this.

Manage your plan online

The quickest and easiest way to access information about your Prudential product, manage it, or to make changes to certain personal information, is through our Online Service. Registering is quick and easy.

Register for our Online Service

Already registered? Access your product details, update your information and message us directly using our Online Service.

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Things to consider before making any changes

  • You can’t switch back – Your income may be lower or higher after you've switched to a GPA, and you won't be able to switch back.
  • ABR matters – Your choice of ABR will affect the level of income you receive.
  • Higher ABR, lower guarantee – The higher the ABR you choose, the lower your minimum income guarantee will be.
  • Higher ABR, more risk – Choosing a higher ABR means there’s a greater risk that your income will go down in the future.
  • Lower ABR, more growth potential – Choosing a lower ABR offers more potential for your income to increase in the future.
  • Tax and benefits impact – Income changes may affect tax, personal allowance, or entitlement to state benefits.
  • Other considerations – Creditors may claim income if you owe money, and advice fees may change.

About your annuity income

Your annuity income might change depending on 

  • the options you’ve selected
  • the performance of our With-Profits Fund
  • changes to your tax code
  • changes to your gross payment amount (before tax or deductions).
     

You’ll see any income changes in your annual statement.

What happens next?

  • We’ll contact you about seven weeks before your policy anniversary to explain any income changes and your options.
  • We’ll let you know if your net income changes by more than £10.
  • If you want to be automatically updated when your net payments change by £1.00 or more, contact us to opt-in.
  • 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)

Further information

Next steps

If you have any questions or need any help with your annuity, call us on 0345 640 0000 or +44 118 964 502 if you're calling from abroad. Lines are open Monday to Friday, 08:30 - 18:00, excluding public holidays.

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