Single lifetime annuity meaning

A single lifetime annuity is an annuity purchased to provide guaranteed income for one named individual only; payments stop on that person’s death and no continuing pension is payable to a spouse, civil partner or dependant. In practice, this option is used to secure retirement income from defined contribution savings (including AVCs) and is chosen instead of a joint-life annuity where the member does not require a dependant’s pension. The term “single-life” (or “single lifetime”) is descriptive market usage across England & Wales, Scotland, Northern Ireland and Ireland. In UK tax law, “lifetime annuity” is defined under the Finance Act 2004; “single-life” denotes that no contingent dependant’s annuity is included. Irish usage is broadly consistent. Key features typically include: - Level or increasing payments (for example, RPI/CPI-linked). - Optional death-benefit add-ons that do not create a survivor’s pension, such as a guarantee period (continuing instalments for a fixed term after death) or value protection (a lump sum refund of unused purchase price), subject to tax rules. Practical significance: a single-life annuity generally provides a higher starting income than a joint-life annuity, but with the risk that dependants receive no ongoing income unless limited death-benefit options are selected at outset.