With an annuity certain as a supplement to your life annuity you have more options to tailor your income according to your needs when you retire. 

You can choose to have part of your compulsory contribution allocated to an annuity certain. This will provide you with higher benefits in the early years of your retirement. 

How does an annuity certain work?

An annuity certain is a savings scheme that provides you with a monthly benefit for a fixed period. In general, the annuity certain is paid for 10 years, but you may choose a longer payment period of up to 30 years. 

Your do not pay tax on contributions to an annuity certain – and if you pay the top tax rate, it may provide a tax advantage to set up an annuity certain. When the annuity certain is paid, it is taxed as personal income. This means that your monthly benefit is taxed like your salary. The payment is, however, exempt from the 8 percent labour market contribution.

If you do not receive all the money during your lifetime, any remaining funds are paid to your surviving relatives. 

Next steps

If you want part of the compulsory contribution being allocated to an annuity certain, you must contact us. We can ensure that you do not contribute more than you can receive tax relief for before we set up an annuity certain for you. Contact us here