P202 CJJFAX 200 Sun 3 Mar 20:46/30 n2 O WEEKEND PERSONAL FINANCE MAGAZINE Eeaturi 204-3 Annuity Update 204 Mortgages 260 New arrivbls 205 Savings 260 Panels: Stock MarKet 206 Annuities 270 Unit Trusts 207 Tax Guide 280 AT SPEED SERVICE ON BBC1 'EEKDAYS Key market pointers at a glance 201 Shari prices:aA-G 221 G-S 222 S-Z 223 Latest foreign exchange rates 251/254 ]L CityHeads Moneyfili Annuities TaxGuideP202 CJJFAX 202 Sun 3 Mar 20:45/24 1/4 ANNUITIES O An annuity is basically an income for life bought with a capital sum. The level of income which you get is djpjndjnt on your age and the options which are selected. There are two principle types of annuities, pension annuities and purchased life annuities. Pension annuities are bought with the proceeds of a pension fund. Purchased life annuities are bought from capital to provide a high level of income for the retiree. Mortgage & Savings Guide 260 Feature 2 Update Arrivals StocksP202 CEJFAX 202 Sun 3 Mar 20:44/29 2/4 ANNUITIES O Annuities can include a number of options suitable for different personal circumstances: Single or Joint Life Annuity A single life annuity pays the highest pension but it ends on the death of the annuitant. A joint life annuity pays a lower pension but continues to your spouse if you die. With a joint life annuity you can choose how much of your pension carries on to your wife after your death. -hj normal choices are 66) or 50%. Selection of Annuity Rbtes 270 Feature 2 Update Arrivals StocksP202 CJJFAX 202 Sun 3 Mar 20:39/34 3/4 ANNUITIES O Annuities can include a number of options suitable for different pjrsonbl circumstances: GuaranteedONet Guaranteed Annuity You may choose to select a specific guarantee period of, for example, five or 10 years. If you selected a five year gubrantee, and died after only three years, your pension would bj paid for another two years. It is usually an inexpensive option and most pensions are guaranteed for five years to avoid financial loss if death occurs soon after retirement. Selection of Annuity Rates 270 Feature 2 Update Arrivals StocksP202 CJJFAX 202 Sun 3 Mar 20:41/39 4/4 ANNUITIES O Annuities can include a number of options suitable for different pjrsonbl circumstances: Escalation A pension may escalate bz an amount up to 8.5), and the normal choices are between 3), 5% or in line with the retail price index X5PI). Escalation may appear expensive in the short term but in the long term, it may bj a good investment as it helps your income to keep pace with inflation. Annuity Update 204 Market Panel 206 New Arrivals 205 Annuity Rates 270 Feature 2 Update Arrivals Stocks