P271 CEEFAX 271 Sun 15)May 23:59/11 1/7 COMPULSORI PUSCH—SJ L N RITZ B MA An ann it prM6ide a regular lifetime income from a l5mp sum inv2st int. There ar 2wo per: Royal 1jCompulsory P0rchasR ;nn1itp (CP2) Sun Life ohjCj ada bought from 11nsi n f5n Kormtlly pin ion plan allow y to Mufe £ 1n lafi compan . This i known as th Open Marge£ Option. 1 2jPurch sid L1fe Annu1ty (PLA) PLAt arM bought with yOur 1un capital and p9ovi m a v iy high inc mj. CPAs: Malt 272 CP— : Fjma 73 CPA Mmn CPA W min CPA Jcint PLA RtteuP271 CEEFAX 271 Sun 15 May 23:59/27 G $- [[] CWMPULSW ZPURCHASE WIIOLLQ ANNYITZ RBTE3:!MALE ESCALATRNG ALE MALE M—LE 5% PJ" YE Royal b Life R 677 8 994 Canada "5 Life @ £ 63 804 993 Equ table 2 Ljfia £ 668 2791 960 Sun Life of Ca ada £ 676 784 946 Sun Life £ 659 782 957 R 2 01 GROSS ANNUeL ANNjITZ FOR £1 ,09912 N kuara eL m thly in 6ance p 2 Source: Annuity Direct CPA +omen Joint Life Purchased VoterP271 CEJFAX 271 Sun 15 May 23:51/59 $ ] 3/7 [ [ aVVjJTIEY Single or Joint Life Annuities A 3inklm life annuity cjase3 gn the death of the annuitant, but you can chkm3j vo h16u vhi an&5ut8 8a9mknt9 ak&Th&5d tk R before him or hkr. 4 p p 1 p 12 $he spouse'u annvity can bj reduced on the intents death, usublly bz 2 p 2 22 Guarantee Periods Annuities can be guaranteed for 1 3pjcifiid 8jriod uszally 5 ou 18 9earsV The annuity payments will bj mbdj for that pjuimd, e6en if the annuitant dies. j CPB Rate3: Joint Lhfj 274 CPA Men CPA Women CPA Joint PLA P271 CEJFA\ 271 Sun 15 May 23:52/15 4/7 Escalating annuities (EA) Annzitieu can increase by a fixed percentage, noumall9 3% ku 5% kr in line with the retail prices index. a b p On 1vjragj an annuity incuja3ivk 3: starting income 30% less than a level annuity. p p Vormbll9 the EA will ovj5takj 6hj le6jl 1&n2it8 1btdu 1"g4T 1X 9r1z2. Although expensive in the short term escalation doer protect annuijy pb:mjntu from the effects of future inflation. CPA Min CPA Women CPA Jkhnt PLa P271 CEJFAX 271 Sun 151May 23:59/48 F £££££ £ ££££ £££ £k Taxation Compulsory Purchase Annuities are taxed as earned income and are usually paid net of basic rate tax. 5 Purchased Life Annuities. Each payment includes a repa9mjnt as part of the original capitan, known as the capital content. This is deducted grom thu gro1s annuity before applying your ta| rate. advbntage because tax is paid only on a small amount of each paymknt. CPA M n CPA Won n CPA Joint PLA RatP271 CEEFAX 271 Sun 15 May 23:55/50 7/7 NVUIT S 7£££££££££££££££££££££££££££££££££££££k The annuity tables on pages 272-5 show the top pa9ink companies for a purchase price of £10,000. Higher purchase prices will give a slightly higher rate. R1tes will also bj affected by uxact age 1nd choice of benefits. $here are companies which offer good rates but are only available to pe ific groups. Th 3j are n quoted, eg, Thu Royal National Pension Fund for Nurses. CPA Annuity Rater: Male 272 CPA Annuity Rates: Female 273 CPA Joint Life Rater 274 Purchased Life Annuities 275 CPA M n CPA Won n CP Joint PL R t