Income Choice Annuity

Making changes to the income from your Income Choice Annuity

If you’re considering making a change to your income, we’ll be happy to help. It’s important to understand your options and the effect of any changes you make. There are a few things you should think about before you make any decisions.

If you have any questions once you’ve read this summary, or need any help understanding your options, just call us on 0345 640 0000 or +44 118 964 5024 if you’re calling from abroad. We might record your call for training and quality purposes. To find out more about how we use your personal data please visit


How your Income Choice Annuity works

It pays a regular income for life, linked to the performance of our With-Profits Fund. This means your income could change every year and could go down as well as up, as shown in your annual statement.

We guarantee that we'll never pay you less than a certain amount. We call this amount the 'secure level'.


Your options

On any policy anniversary, you normally have the option to change your income from a range we give you. Your annual statement will tell you if you have this option, the range and how to do this.

Things to consider before making your decision

  • The income range available will change each year.
  • The maximum income available each year may be lower than your current income. You don’t have to reduce your income but if you do, then the new limits will apply.
  • Taking a higher income means there’s a greater risk that your income will go down in the future.
  • Taking a lower income offers more potential for your income to increase in the future. However, your total income may be lower over the lifetime of the plan.
  • Your secure level basis will not be affected by any change in income.
  • Any change in income may be taxable.
  • Choosing to increase your income could impact your entitlement to certain state benefits.
  • Your personal allowance could be affected.
  • If you increase your income and owe money, creditors may have a right to the income from your plan.
  • If you’re paying for ongoing financial advice, any change in income could result in a change to the amount you pay your adviser - please contact us if you need more information.

Protecting yourself from investment scams

Fraudsters are always out there and constantly changing their tactics. So if you’re thinking of reinvesting the money from your plan, take a minute to find out more, and stay ahead of the scammers.

What to do now

Give us a call on 0345 640 0000 or +44 118 964 5024 if you’re calling from abroad. We can’t give you advice or make your decision for you, but we’ll be happy to help you understand your plan and talk you through all your available options and their possible implications.

Alternatively, speak with a financial adviser - if you don’t have one, you can get details of financial advisers at You may be charged for their services.

We’re here 8:30am - 6pm Monday to Friday (except bank holidays) and happy to help in any way we can. Please make sure you have your plan number to hand when you call.