An annuity is what many people commonly refer to as a pension. The most common option at retirement is to use your accumulated pension fund to buy an annuity from an insurance company.
This is a guaranteed income for the rest of your life. The amount of income you receive will be based on, among other things, your life expectancy at retirement - so will vary by retirement age - and the size of your retirement fund!
Unlike a tax-free lump sum, you pay income tax on income from an annuity.
Find out more about Enhanced Annuities from Irish Life Corporate Business.