Conventional annuities

The Scottish Widows Annuity is available to existing Scottish Widows clients and provides a guaranteed income in retirement, with the option to provide an income for a spouse or dependant upon the client's death.


  Key benefits

  • Income on a Single or Joint Life basis.
  • Guaranteed period of 5 or 10 years.
  • Choice of payment frequencies.
  • Income payments can be level, increase at a fixed yearly rate, or vary in line with RPI.
  • No minimum purchase price.

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Key details

  • Conventional lump sum contract where the annuity is payable for life.
  • Provides your client with a taxable income for the rest of their life.
  • Gives the choice of a tax-free cash sum at the start in exchange for a smaller taxable income (for Personal Pension Plan with Immediate Retirement, also referred to as Immediate Vesting Personal Pension).
  • Single or joint life.
  • At least age 55 but less than 75 at entry.
Income choices
  • Level income.
  • Increased at a fixed percentage (0-8.5% in steps of 0.1%) each year.
  • Varies in line with changes in RPI.
  • Choice of payment frequency - monthly, quarterly, half yearly, yearly.
  • Paid in advance or arrears.
Purchase price
  • No minimum.
  • Once set up, the client can't cash the plan in, or change the basis of their income.
  • Annual P60 confirming tax paid and usage of lifetime allowance.
  • Income from an annuity will be treated as earned income and will be taxable.
  • If your client decides to take a cash sum, it's normally tax-free.
  • We'll deduct tax from each income payment before it's paid.
  • HM Revenue & Customs will notify us of the relevant tax allowances and we'll take these into account in working out how much tax to deduct.
  • If your client selects a joint life annuity, or a guaranteed period, and dies before they are 75, any income paid after the client’s death will not normally be subject to income tax, although any income paid to the client or dependant’s estate may be subject to Inheritance Tax.
  • Tax rules may change in the future.
  • Once it's set up, your client can't cash in their plan or change the basis of their income, even if their circumstances change.
  • When your client dies, their income will normally stop. The total amount paid out may be less than the amount that was originally used to purchase the annuity.
  • Your client will receive a lower income during their lifetime if they choose to have an income paid to their dependant after they die.
  • If your client chooses an income that doesn't increase or increases at a rate lower than the future RPI, inflation could reduce what they can buy with it.
  • If your client chooses an income that is linked to RPI it will vary in line with prices, and in the event of RPI being negative, it could go down.
  • If your client transfers from another plan any guaranteed benefits associated with this would be lost on transfer.

Important notice

Please note that charges, terms and limits may change. Tax treatment depends on the individual circumstances of your client and may be subject to change in the future.

Key documents

Key Features of the Scottish Widows Annuity (PDF) 

See our Scottish Widows Annuity documents in one place.

View our literature

Other information you need

  • Existing Scottish Widows clients (and those who are converting from a Scottish Widows Unitised Annuity) who:

    • are resident in the UK and Northern Ireland (excluding the Channel Islands and the Isle of Man)
    • are at least 55 but less than 75 at entry
    • are relying on a regular income in retirement and don't want to take any risk with their investment
    • want the option to provide a guaranteed income for their spouse or dependant after their death.

    Not for your client?

    Take a look at our other retirement income options: Retirement Account and Enhanced Annuity

  • The Scottish Widows Annuity allows your client to bring their pension plans together to provide retirement income.

    The income they will receive depends on a number of factors when they buy their annuity:

    • interest rates
    • their age
    • mortality rates
    • charges
    • the basis of income chosen
    • postcode and pot size.

    No account is taken of any medical conditions and/or lifestyle factors. Our Enhanced Annuity might be more appropriate.

  • Our charges

    • We allow for our charges when we calculate the amount of income offered.

    Your charges


    Initial Adviser Charge

    • This is the amount agreed between you and your client for any advice and services you have provided in setting up a Scottish Widows Annuity. The charge is normally a fixed amount taken from the annuity purchase price after payment of any tax free cash.

    Initial commission

    • Scottish Widows will pay up to 1% of the annuity purchase price (after payment of any Tax Free Cash) for services agreed in setting up a Scottish Widows Annuity. If the Scottish Widows Annuity is set up from an existing Scottish Widows pension product, commission may not be an available option.

    Important notice

    Please note that charges, terms and limits may change. Tax treatment depends on the individual circumstances of your client and may be subject to change in the future.

  • Before you apply

    Before proceeding to the application you should ensure that your client has been provided with:

    • a copy of our retirement pack
    • a copy of our Key Features (PDF) 
    • a quotation
    • a discussion about payment for services or advice.

    What you need to apply

    • Confirmation from the client of their consent to any Adviser Charges.
    • Discharge papers from transferring company, if applicable.
    • Completed lifetime allowance form.
    • Trustee, administrator and member signature.
    Please return completed forms to:

    15 Dalkeith Road
    EH16 5BU

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What do you want to do next?

We've improved our rates, but we're not on the portals yet.

Call us for a quote on

0345 716 6777

Lifestyle or medical condition?

See how our Enhanced Annuity can benefit your client.

Look at Enhanced Annuities

Retirement Income alternatives

Look at our flexible income options which you can access through Retirement Account.

Look at flexible income