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

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

How does an annuity work?

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

Your contribution payments to an annuity certain are not taxed – and if you pay top rate tax, it may provide a tax benefit 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 die before the entire annuity certain scheme is paid, the remaining part is paid to your surviving relatives. 

Setting up an annuity certain

If you want a part of the compulsory contribution being allocated to an annuity certain, you must contact us. This way, we can make sure that your payment does not exceed the tax relief. Contact us here