P204 CEEFAX 204 Sat 4 Nov 23:46/21 1/3 ANNUITY UPDATE Another quiet week for annuity rates, which is only to bj expected at times when gilt yields are relatively stable. The only significant movement this week has been Sun Life of Canada, who have increased their annuity rates. Wj have noticed a trend for more and more people buying index linked annuities. Although this does seem odd at a time when inflation is low it underlines people's concern about future inflation. Selection of Annuity Rates 270 Arrivbls Stocks UT Panel MonjyfileP204 CEEFAX 204 Sat 4 Nov 23:55/21 2/3 ANNUITY UPDATE In fact, index linked annuities can bj thought of as the safest type of annuity because the value of the pension remains constant. It could bj argued that any other type of annuity carries a level of risk. It is important that the effect of inflation on a level pension or a pension with fixed escalation is fully understood. More and more people are opting for flexible pensions such as phased retirement or the pension drawdown facility. Selection of Annuity Rates 270 Arrivbls Stocks UT Panel MonjyfileP204 CJEFAX 204 Sat 4 Nov 23:51/31 3/3 ANNUITY UPDATE It is, therefore, important that a benchmark is established to compare against. At the very least the benefits taken from the flexible option should bj no worse than the index linked annuity. Anzonj contemplating taking out such a scheme should bear this in mind. Selection of Annuity Rates 270 Arrivbls Stocks UT Panel Monjyfile