More about Annuity

Understanding the basics

  • An annuity provides the security of a regular income for the rest of your life

    You can buy an annuity from an insurance company. You can choose the type of annuity you want to match your circumstances and financial plans. Once you have bought an annuity, you can’t change it or change insurance company, so it’s worth taking the time to choose the right one. You can compare annuities yourself or you can use an annuity comparison service. HUB Financial Services (HUB) has been appointed to provide a comparison service for members of the Scheme.
  • Take up to 25% of your DC pension pot tax-free before you buy an annuity

    When you retire and just before you buy your annuity, you have the option to take a tax-free cash lump sum (this is normally up to 25% of your Defined Contribution (DC) pension pot up to the Lifetime Allowance).
  • Pass it onto your loved ones

    If you want your dependants or beneficiaries to receive an income or lump sum after you die you will need select these options when you buy your annuity.

Comparing annuities

If you decide to buy an annuity, you will need to choose the type of annuity that’s right for you and shop around to find the best value for money. You can get access to a guided annuity service through HUB Financial Solutions (HUB) as a member of the Scheme. When you are closer to retirement, WTW will automatically send you ‘Your Pre Retirement Pack’ containing information about various annuity benefit options available to you. HSBC will only pay for you to use this service if you are actually taking your retirement benefits from the Scheme. It is not available if you are just considering whether or not to retire.

Further information in relation to HUB is available from WTW at and on 01737 227575.

To help you to understand more annuities, take a look at some of the different annuity options available below:

Annuity income and tax

What should I do next?

If you are thinking about taking your DC pension pot and would like to get a retirement quote or request a retirement pack, you can do this by logging-in to My Pension. Once logged in, select the Quotes drop down menu. Please note you can only request a retirement quote if you are aged 54 or over.

Alternatively, you can contact the Scheme administrators directly.

Additional help to make your choices

Have you watched a retirement webcast?

Our retirement webcasts are designed for members aged 50 and over, to help you understand more about your retirement income options. Click to watch the full series of Retirement webcasts for members over age 50.

Have you tried our Pension Freedom Planner?

If you want to find out more about how much retirement income you might get from buying an annuity, why not login to My Pension and use the modeller called the Pensions Freedoms Planner.

Quick links to external help sources

Explore the Retirement Options

Retirement options overview 

There’s plenty to think about when planning for retirement - do you need flexibility or income certainty? Be in control or hands-off? Would a combination of options be better? Our retirement options overview is a great place to start to understand the basics, compare the options and get extra pointers to help you decide.

Drawdown Income 

Keep your money invested and take a flexible income from it. Take as much or as little as you need, when you need.

All Cash 

Take all your DC pension pot as one or two cash lump sums (split between two tax years) from the Scheme.