What is an annuity?

An annuity is often referred to as an "income for life", once you purchase an annuity you buy the right to accept a regular payment regardless of fund performance for the rest of your life. Unlike an ARF and AMRF an annuity does not carry any investment risk. When considering retirement you need to seek "ADVICE". Every individual has goals and expectations in retirement which are different, certain pension products will not be suitable to you. Please call our office on 01-4546730 or email us on for more information. We are here to help!

What are the advantages of purchasing an annuity?

An annuity provides the following advantages:

  • It provides a guaranteed level of income for Life. The risk of living too long is insured
  •  There is no "Bombout" risk unlike an ARF or Taxable Cash option
  • There is no investment risk
  • There are a wide choice of annuity types and benefit options to suit individual circumstances
  •  Annuities are simple and easy to understand and provide an element of "piece of mind"

How do I choose the right Annuity?
It is our job as independent advisors to help you along in the process of choosing the correct annuity. You can purchase an annuity with part or all of your proceeds of an occupational pension arrangement or defined contribution pension arrangement. We help you with the consideration of choosing the best annuity option for you.

There are a number of different annuity options open to you and they are outlined as follows:

1. Guaranteed of investment linked annuity
2. Level or escalating annuity
3. Guaranteed period

What factors impact on the level of Annuity provided by the life company?

When deciding on the level and amount of regular payment given to you the life company actuary take into account the following factors:

  • Life companies balance the level of annuity given to an individual against medium to long dated bond yields
  • Sex of the individual. The female tends to live longer than the mail (fact) and therefore the rate of annuity differs between males and females
  •  Age of the individual. The younger you are the more likely you are to live for a longer period of time and hence the level of annuity given can differ.
  •  If the individual chooses level or increasing annuity. A level annuity does not take into account indexation. An increasing annuity will rise in line with indexation / inflation etc.
  • If an individual chooses a single life (annuity dies with you) or a partial / total revision option which passes the annuity to a spouse
  •  The state of the health of the individual


In some situations we will advise that you to consider taking out an annuity. We will only recommend this product to you if it suits your individual circumstances. We will not recommend any product if we believe it is not suited to meet your individual goals and objectives.

Please call us on 01-4546730 or e-mail the office on

Paul Ryan Pension & Financial Consultants Ltd. is regulated by the Central Bank of Ireland.

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