Life annuities in 2025
pension
Life Annuity
A life annuity is an insurance policy which, in exchange for a capital sum (single premium), guarantees you a regular income until your death. This additional annuity is paid for life, even when the capital is exhausted, so you can live with peace of mind, with a guaranteed income based on your needs.
Wanting to ensure a regular income stream so you can enjoy your retirement to the full, you’ve quite rightly opted for a life annuity. You’ve made the right choice, because you’ll benefit from a number of advantages, particularly in terms of taxation, while at the same time having a regular income that’s totally secure.
But what type of annuity should you choose? Are they still as interesting as ever? Let’s find out what the advantages/disadvantages are
life annuities
The advantages of La Rente Viagère
safety
Security for you and your loved ones with an annuity paid for life
Taxation
Attractive tax treatment of the annuity received, with only 40% taken into account as taxable income
Simplicity
No need to actively manage your capital: a life annuity guarantees you a regular income for life.
Let’s take a closer look at these 3 main advantages
Life annuities offer total security, with guaranteed payments for life. You will receive a monthly or annual payment of the amount corresponding to your annuity, whatever the state of the financial markets. Added to this amount are supplements, known as surplus earnings, which are not guaranteed and fluctuate according to the company’s performance.
Life annuities
Possible options
Immediate life annuity
With this type of life annuity, the annuity is paid immediately after the single premium has been paid.
Life annuities are for you if you already have capital to invest and want to benefit from immediate annuity payments.
Deferred life annuity
If you have not yet reached retirement age, it is possible to build up capital through various products such as a 3rd pillar, with the intention of using the capital for a life annuity.
Or you can pay a large capital sum directly, which will generate a return until you reach the first annuity payment date you define in advance.
On the date you specify, the capital plus interest is converted into a life annuity.
With refund: In the event of your death, the person you or your family have designated will receive a refund of the single premium paid, without interest and with deduction of annuities already received.
No refund: In the event of death, nothing is refunded to your next of kin, but you benefit from tax advantages, as the capital is not included in your taxable assets.
With a life annuity on 2 lives, it is possible to provide an annuity for life for 2 people.
This option is ideal for couples who wish to insure each other: in the event of the death of one of the two partners, the survivor will benefit from the life annuity for the rest of his or her life.
