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How Often Is Income From A Pension/Retirement Annuity Paid?

Last updated: 09/08/2011

When you buy an annuity at retirement, you usually have a choice over how often the income from the pension/retirement annuity is paid.

Depending on the rules of your chosen annuity provider, the typical options are:



Half Yearly


You will also be asked whether you want the income to be paid in advance or in arrears.

With the ‘in advance’ option, the first income payment will be at the start of the payment period.

For example, if you ask for a quarterly income, payable in advance, then the first income payment will be paid when your annuity contract begins and then the next instalment will be paid 3 months later.

With the ‘in arrears’ option, the first income payment will be at the end of the payment period.

For example, if you ask for a quarterly income, payable in arrears, then the first income payment will be paid 3 months after your annuity contract begins.

As a general rule of thumb, the longer that you wait for your initial annuity income to be paid, the higher the income will be.

When you shop around for your annuity, you should ask for personalised annuity quotes based on the various options mentioned above so that you can best decide on how often income from your pension/retirement annuity should be paid.

Alternatively, you can talk to an independent annuity adviser and they will be able to provide you with comparative annuity quotes and advice regarding the best annuity options for you.

Article Category: Other Articles Tag:  annuity options 

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