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The guaranteed pension annuity from Hodge is designed with simplicity in mind. With competitive rates, it enables your clients to make the most of their money in retirement.
- Monthly, quarterly, half yearly or annual payments
- Guaranteed payment periods of either 5 or 10 years
- Dependents income can also be added, or either half, two thirds or full income levels
To recommend the Hodge annuity, you will need a relevant annuity advice qualification.
The Hodge Annuity
A simple approach to pension annuities.
To identify if your client is eligible for an annuity from Hodge Lifetime, please read on.
Applicants must be aged between 55 – 85, and be resident in the UK. Income from the annuity will be paid directly into a UK bank account.
We accept annuity premiums between £10,000 and £350,000. Up to six pension policies/funds can be combined into the annuity.
Income: Level only. We do not offer a retirement income that increases year on year.
Payment frequency: Income can be paid monthly, quarterly, six-monthly or annually. Income can be paid at the start or end of each period.
Dependent’s pension: The annuity can provide an income for a spouse or partner after the annuity holder’s death. This can be 50%, 66% or 100% of the annuity holder’s income.
Guaranteed period: Guarantees can be 5 or 10 years. Hodge will continue to pay the annuity income for the guaranteed period even if the annuity holder dies before it expires.
Hodge Lifetime offers standard annuity rates only
If your client is in ill-health, smokes or is overweight, they may be able to secure a higher level of income by purchasing an enhanced or impaired annuity from another provider.
The Open Market Option
It pays to shop around.
Your client is not obliged to purchase an annuity from their pension provider.
The annuities offered by your client’s pension provider may not be the best available. Pension savings can be transferred to a different insurance company to provide the annuity – this is called “exercising the open market option”.
Everyone nearing retirement is encouraged to shop around before buying an annuity. This could increase your clients’retirement income by a significant amount.
We offer our annuity under the Open Market Option. This means that our annuity rates are competitive. You can compare our annuity rates with those of our competitors for your clients.
Exercising the Open Market Option is straightforward. You can complete the application paperwork with your client and send that to us. Once we’ve had the application, we undertake the work to transfer the pension funds to us so that we can provide the annuity.
You can understand more about our application process here.
The Application Process Explained
We’ve made it straightforward to apply for an annuity from Hodge.
6 months before retirement
Your client will receive an information pack from their pension provider which will confirm the value of savings. Your client needs to read this carefully. There may be features that could be lost if the pension is transferred elsewhere. You can review this with your client.
3 months before retirement
You can support your client in undertaking some preliminary planning. By obtaining and comparing a range of indicative annuity quotes, you can understand the level of income your client can expect. These quotes will also help identify which options are important to your client in their annuity purchase such as a dependants’ pension or a guarantee period.
1 month before retirement
Your client should obtain an up to date valuation of their savings. A further set of annuity quotes will help confirm expected income levels as these may have changed since the original quotes. Your client will need to decide on their preferred annuity provider and submit an application. Supporting documents such as birth certificates or passports and details of any existing pension savings will be needed.
Applying for an annuity with Hodge Lifetime
We’ve designed our process to be as simple as possible. We process applications as follows:
- We check the application to be sure we have all of the supporting documentation and that the quote is valid. If anything is missing, we will request it
- We write to the pension provider and tell them the level of tax free cash to pay based on the details on the application form, and to transfer the remainder of the pension fund to us. Some providers allow us to do this online
- The value of the funds we receive could be slightly different to that on which the quote was based for example if further contributions were made after the application was submitted. Therefore, we prepare a final quote before the annuity is put into payment
- We keep you informed throughout the process to ensure there are no surprises for you and your client
What is a pension annuity?
A pension annuity enables pension savings to be converted into an income in retirement which will continue for the rest of the annuity holder’s life. Annuities can be bought with monies saved in money purchase or similar pension schemes. Please note if your client has a final salary pension or similar, the scheme will usually pay an income directly from the pension scheme. An annuity cannot be bought with a final salary pension scheme.
Does my client need to retire before buying an annuity?
No. An annuity can be bought at any time provided that the annuity holder meets the age eligibility criteria.
Can my client buy an annuity without using an adviser or broker?
Yes, but not from Hodge Lifetime. We’re committed to ensuring that customers are aware of their options and they have compared the annuity rates available in the market. We prefer that everyone uses the help of an adviser or broker. Some providers will allow annuities to be bought directly.
How long does the process take?
This mainly depends on your client’s pension provider. Assuming we receive the pension funds within two weeks, the whole process should be completed within a month.
Can an annuity be cancelled?
An annuity is intended to be a commitment for the rest of the policy holders’ life. The Hodge Lifetime annuity has a 30-day period during which the policy can be cancelled if your client changes their mind. After 30 days from the date the application is signed, the cancellation period expires and the policy cannot be reversed.
What is the benefit of including a guarantee period?
A guarantee period ensures that the annuity will continue to be paid even in the event of death in the early years. The guaranteed amount will continue to be paid to a dependent or estate.
How is annuity income calculated?
Annuity income is determined based on life expectancy and long-term interest rates prevailing at the time the annuity is purchased.