P271 CEEFAX 271 Tue 30 May 19:1Y/27 l4|l4|, ,l4 1/7 2 ANNUITIES W An ann5itz prm6idjs a zrg4l1z lifetime income from a l5mp 3um investment. $here are two type3: 1/Compulsory Purchase Annvity (CP—Q R her are h i f 3 NormallX 8en3im& 8jan; 1vlo3 |o5 to buy a bettdu pnn9itX srfm anothuy life company. This is known as thu Open Market Option. p b p 2OPurchasjd Life Annuit8 (PLAQ PLBs ard bought with your own capital and provide a vjuz high income.a CPA : Mal 272 CPA Female 73P271 CEEFAX 271 Tue 30 May 19:22/06 2/7 n |. £££££££ ££££££ £ £ k Ann6ity rates are calculated wish regard to life expj tancy, retuzns on fixed interest investments and life company expjn3es. This means that rates incrjasr with age, and rise or fall djpjndink on 5 As an annuity is for life, there are a number of options vhat provide protection from early death, such as guarantUi periods and spouse's benefits. 0 Annuities can increase each year as a hjdgj against inflation. CPA Men CPA Women CP— Joint PLA RaterP271 CEEFAX 271 Tue 30 May 19:10/17 1/2 COMP LSORY PUT A ANNUI Z RATES MALE SCgLB oNO MALE MALE MALE A 3im£ d Ah a0n X 65 & h dea h ol h n t , u o Mruita li Mjfe b p £ 6 9 8 993 Stalra t 2 Ass r nce 8 0 84 The spouse' a nu can se45c Onion 2 p£ 6 4 817 01 Prudjn p 2 13 1 A ra c Guarantee Periods * Lnfei £ b5 gpa 886dd 29 1 ecifip p2 io usu2l 5 12 * Maxims purchase pric 5 0 GROSS ANVUAL afNUITY FORA£ 0,X0X No guarant d, m h a j Source: Annui y firlct CPA Womn JPi t Lkf C P Johat dL RttjP271 CEEFAX 271 Tue 30 May 19:29/55 W 1/2 COMPULSORY PURCHASE T ALE p44 012 22 2p 2 24 122 22 0 dBisI 32) 60 65 70 AVNUJT\ X Equjta le 2 2 3k Norwich b d p Unjona 991 1064 117 Equitable Lkfe 0 945 8 Royal 2 22 022 2 0b 2)4 2 12 2 Prudential p Peuduntian 0 —ssurancf 0 929 1022 0993 Gene ali 1 8 2 2 GROSS ANNUAL ANNUITY FOR £10m000 Guaranteed 5 yrs, mthty in advancd kf fu u e inflat n. Source: Ann itXADh ecu CP— +omkn John: Life hu:ch!yud Ggtj2P271 CEEFAX 271 Tue 30 May 19:24/18 5 7 Sp aNNUITKES O R Freq5enc9 f Pb9m n 2 3u Most a zrt es ar p on 2ly ! 5 35 Life U d LB9 tea 42 Advbnci: Payment s d a j2 beginning p d 0 Arrears: At the ndpo :hj p riod. adhdbd2h 4p phd p 7 2 242 PazZjmhw can alt# be@mbdj annually, iall yUarly or qubrje ly. U p b p p p hRghS A paAL nt, but qua£tj,0y in arrears is the most c mmon d pp pppppp ppppppp pppppp (CPA Men CPA Wamjs CPA J int PLA RaijP271 CEEFAX 271 Tue 30 May 1]:1 L 6/7 ANNUITIES Tbxation p Compulsory Purchase annuities are taxed as earned income and are usublly paid net of basic rate tax. pp 2 2 Yj Purchased Life Annuities. Each 8a9ment includes a re8a:mint as part of the originbl capital, known as the capital content. 4 2 annuitu before appl9ing yOur tax rate. 12 20 advbntagj because tax is paid only P271 CEEFAX 2714 Tuj030 May 19]24/10 WLL 4/2 aVVUITJES 2 2 IO N Z R 2 ALI ESCBLB$UNG h MALJd b ALE MALE 5% PE YEAR 35 Rdpdb dppdd pd2 d1 ph42 2 p p22)p Equitable 2b 2 Life r£ 69 231 299 Stalwart * 25 asst ance C@ 7p0 @ 820 984 !ommju iaf 0£ 67 97 Ihjre are compbnUiu which offer Sssurancea£ 689 2 8 7 2 973 tn Q0eahfic gro5ps. The5e 1rd nkz Life p £ 665 p 806 d d PensjonhGund wot Nu:sju.12 p12 R M ximkm pu c b e yri eh£50, 00 No guaraniee, month y in 1 a ce r 0Sourqj: annuit= ehrjst 1 CPA Men CPA Women PA Joint PLB Rbtes