Later life pot

Keep some money invested to use in the later part of your retirement

When the time comes

In the later part of your retirement, you can:

  • use the money to buy a guaranteed income for the rest of your life – this is called an ‘annuity’

  • take a lump sum

  • take flexible withdrawals

How the pot works

The later life pot works by:

  • allowing you to choose the age when you want to access money invested in the later life pot – Pension Wise has advice on how to do this and you can change this whenever you want

  • growing your money until your chosen age by investing in a medium to long-term fund

  • using this pot alongside the Flexible income pot, for an income throughout retirement, or on its own

Icon of a growing plant, combined with a pound sign


With an annuity, you can:
  • decide how often you would like to receive payments, for example monthly, quarterly or annually

  • receive a level or escalating guaranteed income for the rest of your life

  • choose to allow the income to carry on to a dependant after you die

  • add optional protection so that the income will be paid for a minimum number of years or until a minimum value of payments has been paid

  • get a higher income if you smoke or have a medical condition – this is known as an enhanced annuity

You can’t buy your annuity directly through Smart Retire. Money Helper has advice on buying an annuity and shopping around.

Investment fund details

Money you put in this pot is invested in the Smart Annuity fund. This fund is provided by Legal & General. To see the details of this investment fund, download the Smart Annuity Fund factsheet.

Use this pot if

  • you want a guaranteed income later in retirement

  • you want to leave some of your money invested and access some of it, too

Estimating your annuity

To work out the income you could get from an annuity, we look at things like:

  • how much your later life pot might be worth at your chosen age

  • typical life expectancy

We assume the annuity will be:

  • payable only to you

  • payable for life, with no minimum period

  • paying you the same amount every month

Apply in three simple steps

Discover how you could combine your retirement options with Smart Retire

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