Income Payment Frequency


Last updated: 20/03/2014


When you buy an annuity with your pension funds, you will have to state your desired income payment frequency.


You can usually choose to have your annuity income paid monthly, quarterly, half yearly or yearly.

In addition, you will have to decide whether you want the income to be paid at the start of the payment period (this is called ‘paid in advance’) or at the end of the payment period (this is called ‘paid in arrears’).

For example, if you choose to receive a monthly income that is to be paid in arrears, then you would receive your first income payment one whole month after the start date of your annuity.

Alternatively, if you choose to receive a monthly income that is to be paid in advance, then you would receive your first income payment at the start of your annuity.

The income from annuities paid in arrears is usually slightly higher than those paid in advance.

Once set, your choice of income payment frequency cannot be changed at a later date.