Conventional Annuity

One type of conventional annuity is a guaranteed annuity. A guaranteed annuity is a pension annuity that guarantees to provide you with a regular income usually for the rest of your life in return for you paying over a lump sum from your pension fund. It can provide a guaranteed level of income which stays the same each year, an income that increases by a fixed percentage or one that changes in line with inflation. The level of income you receive will depend on various factors including your age and size of your pension fund.