P271 CEEFAX 271  Sun 15 Oct  12:26/30
      2/7 
      OU STNNUITSASI
                           
 
 An bnntmjy plovkhjs a regular lifotimj 
 income from a l2mp mum invjstmrnt.     
                                        
 There are two types:                   
                                        
 1/Compulsor  Pu chase Annuity (CPA)    
                                        
 chudU are bo  h  from p n i n fund     
 Sormblly pension plans all w you to    
                                        
 compbnu. ThUs is known bs the  pin     
 Markut Opt on.   18  4      )  g y     
                                        
 2/Purchased Life Annuity  PLA)         
                                        
 P Bs are bought with your own capital  
 and piovidj a vj y high income.        
                                        
   BPAj: Malo 272     CPo : Frmals 273  
  CPA Min  CPA Won n CPA Joint PLA Rbtes
                                        
   P271 CIEFAX 271  Sun 15 Oct  12:27/11
  LL  @R 4/7b
   n1n1   .          ANN IT ES       
  Q         2              
                                        
 Escalaling AnnuitYes (IA)              
                                        
 Annujtieu can increase b; a fixed      
 pj centag   norm lly 3% or 5  or in    
 line with the retail prices index.     
                                        
 O  av ra   an  nn     in r akin     5  
 compoundjdppjt yjarpwill risulz in a   
 starting income 30) less thanha level  
 annzity.) dR  pph b     b     b  4     
                                        
 N  mal y the  A   ll     tag   hj le el
 annuity after about 10 years.          
                                        
 Although ixpen3i6j in the short tdrm   
 escalation does protect annuity        
 pa m nus f om the  ffe ts of futur     
 inflation.a p p    h      2      p  1  
 L
                                        
                                        
   P271 CJJFAX 271  Sun$15QOct p12:27/55
    l |l4|   l                      5/7 
                                        
   W         2 
                                        
 Frequency of Payment          b        
                                        
 Most annyities are quoted monthly. fz  
 convention CPAs are quoted in advance  
 a&d PLA2 hg arrt r1.                   
                                        
 Advbnci:1Paymjn|his made st the p p42b*
 beginnrng of the period. 1  4   4422   
                                        
 Arrtar1: At the und of :hu 8jriod.1    
                                        
                                        
 half yearly or qubrterly.a     p       
                                        
 Annually2in arrearshwill give the      
 highest pa9ment, but, quarterly in     
 arrears ishthj most commonpaltetnativj 
 to monthly payments.        2          
 LLL
  CP— Men  CPA Women CPA Jwint PLA Rates
                                        
   P271 CEEFAX 271  Sun 15 Oct  12:25/48
     4|l |   l                      6/7 
          ANNUITIES       
6     2                    
 
 T xat on                               
                                        
 Compulsory Purchase Annuities are      
 taxed as earned income and are usually 
 paid net of basic rate taxn            
                                        
 Purchbsjd Life Annuities.              
 Each payment includes a repayment as   
 part of the original capital, known as 
                                        
                                        
 (his is deducted from the gross annuity
 bj  r  appl in   o   ta  r t           
                                        
 Ihus PLAt have a significant tax       
 advbntage bjcausj tax is paid only     
 on   sm l  amount of  ach pa m         
                                        
      Annuity Rbtes pages 272-277       
                                        
                                        
   P271 CEEFAX 271  Sun 15 Oct  12:28/04
      7/7 
      )Rp pcNNUITJKS p 2   
            422        )   
 
  h  a   i   t ble      a    2 2-   h   
 the top paying companies fwu a 8urchasr
 price XX
                                        
 HighV  purchasV p^iceO wijl giv^ a     
 slightly higher rate. Rates will al1o  
 bj affected bz exact ace and choice of 
 benefits.                              
                                        
 (here are companies which offer good   
 rater which are only available to      
 sp cifi  gr ups. Th s  are not quot d. 
 For example, The Royal National Pension
 Fund for Nurses.                       
                                        
    CPA Annuity Rbtes: Male   2  272   
    CPA Annuity Rbteu:QFembli@   273   
    CPA Joint Life Rates         274    
    Purchased Life Annuitii1     275