Short-term annuity

Resource type: Glossary item

Status: Maintained

Jurisdictions: England, Scotland, Wales

Under the Finance Act 2004, a short-term annuity is one of the two permitted forms of drawdown pension (www.practicallaw.com/7-507-1079) open to a member of a registered pension scheme (www.practicallaw.com/5-201-6474) that is a money purchase scheme (www.practicallaw.com/0-107-6857) or has a money purchase section. The alternative is income withdrawal (www.practicallaw.com/3-207-2098). An annuity (www.practicallaw.com/1-107-6404) is a short-term annuity if it is bought from an insurance company of the member's choice using all or part of the member's drawdown pension fund and is payable for no longer than five years.

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Resource ID: 3-380-6447
Products: IP&IT, PLC UK Commercial, PLC UK Environment, PLC UK Pensions, PLC UK Public Sector
This resource is maintained, meaning that we monitor developments on a regular basis and update it as soon as possible.

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Topics

Members, Benefits and Pension SharingMembers, Benefits and Pension Sharing (http://crossborder.practicallaw.com/9-103-1341)

Practice notes

Pensions tax: authorised pension payments Pensions tax: authorised pension payments (http://crossborder.practicallaw.com/topic4-380-6324)
Pensions tax: relaxing the requirements to take benefits by age 75 Pensions tax: relaxing the requirements to take benefits by age 75 (http://crossborder.practicallaw.com/topic0-504-9237)

Glossary

Annuity Annuity (http://crossborder.practicallaw.com/topic1-107-6404)
Drawdown pension Drawdown pension (http://crossborder.practicallaw.com/topic7-507-1079)
Income withdrawal Income withdrawal (http://crossborder.practicallaw.com/topic3-207-2098)
Money purchase scheme Money purchase scheme (http://crossborder.practicallaw.com/topic0-107-6857)
Registered pension scheme Registered pension scheme (http://crossborder.practicallaw.com/topic5-201-6474)

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