P261 CEEFAX 2 261 Fri 24 Jan 21:02/12 1/8 A annuity p o i e a r ula lif ti e income from a lump sum investment. Thjte are two types: 1/Compulsory Put ha e Ann ity (CPA) Thjsj are bought from pin jon funds. Normblly pension plans allow you to buy a better annuity from anothjt life firm. This is th Open Mark t Option. 2/Purchased Life Annuity (PLA) ou ht w h your o c i al and ptovijj a very high income. @ CPAs: Mali 264 CPAs: F mali 263 Sport 300 Front Page 100 CPA min YourMonjy City News Main MenuP261 CJJFAX 2 261 Fri 24 Jan 21:13/s0 Wj£3kj£3kj£3k 2/8 Wj $kj $kj 'k Annuity rates ate calculated with reg to li i xp tancy returns on fixed interest invjstmjmts and life company expenses. Rbtes increase with age, and rise or f ll d p din on th rest n on th cujrent yields from medium dated gilts. @ @ Annuities are for lifiL so there are several options that provide protection from early death, such as guarantee periods and spouse's benefits. AnnuitiUs can incjease@each year as a h aka mst inflatio .P261 CJEFAX 2 261 Fri 24 Jan 21:17/32 F Single o Joint Life Annuiti s A jngl li nn ty c a th death of th annuitant, but you can choose to have the annuity payments continue to your spouse if you die before him or her. @ The spouse's annuity can bj cut on the t ts d u . 5 % Guarantee Perio s i specified period usually 5 o 10 yrar . Payments will bj made for thbt period, even if t j nnuitant dies. CPA Rates: Joint Life 264 o t 0o Wear t 400 Front Pa 1 CPA m n YourMon y City N ws Mai M uP261 CJEFAX 2 261 Fri 24 Jan 21:17/22 4/8 @ @ ABnujt@es can increas@@b= a fix d perc ntagj, no mally 3% ot % o in line with th r tail prices index. ^ avjtage an annui5y@incs asing bz 5) compounded a year wile give a starting income 30% lowe than a level annuity. Normally the EA will overtake th level annuity after about 10 yrars. A\though expensive in th short t rm, escalat o do prose ann ity pbzmjnts from tie effect3 of inflation. Sports n ws 300 TV Radio 600 Wjathjt 400 Front Page 100 CPA men YourMoney City News Main MenuP261 CJIFAX 2 261 Fri 24 Jan 21:p7/4k F $ j $kj u j5j5 s{ O Most annuities ate quoted montXly. By convjntio CPA ar quote in advanc and PLAt iN arriajs. Advance: Payment is made at the ejgiM\j\k #M the petS#U. @ Arrears: At@the ind of the period. Payments can also bj made annually, half yearly or quarterly. nn ll n ar i r w l giv the highest payment but quarterly in to monthly payments. TV/Rbdio @ 600 @ Front Page 100 CPA m n ourMon y C ty N w M in insP261 CJEFAX 2 261 Fri 24 Jan 21:02/08 U 6,8 Taxation C#]pLl Lry sA A tALE a p i j o a c rate tax. o Purchased ife Annuities. EacX pa jn C ude i0a8mj t as pbrt of the originbl capital, known as the cape al cont nt. d djdu te om h g o n t before apply n y ur tax rat . us L s@hbvj a sj jficant t x advantage becauvj tax is pai only @ on a small amount of each pbzmjnt. Annuity Rate pages 262 to 267 Sport 300 Wjathet 400 Front Page 100 CAA mmn Moons City News Main MenuP261 CJEFAX 2 261 Fri 24 Jan 41:08/28 h4|h4l<h4 , j j5j5*u?j5j j5 s{5 mpaire ifi nn ities If you are in bad health, you may bj able to increase your annuity by apply ng for an impaired life ann ity. Two companies, Sun Life and the Pension Friendly Annuity Society, offer better rates for those wijh medical conditions such as heart problUms and cance . Stalwart Assurance offers higher rates for smokers, those with diabetes, high blood pressure and high choliste ol. CPA Annuity Rbtes: Mal 264 CPA Annuity Rates: Female 263 CPA Joint Life Rates 264 BBC CEEFAX FRONT PAGE 1p0 CPA min YourMonjy City News Main MenuP261 CJEF" 2 261 Fri 24 Jan 21:08/4s $kj 'k j5j5* ? 5j5j s{5 Th annuity tables on page 26 -5 how t op pb j co p je for a chb j price of £10,000 and £Q00,000. High purchase pric will giv a slightly dig jt ratb. R tet whll 1lso dj affected by exact ag and choice of ejmjeits.a @ @ @@8@ @ @@ @@ @ There are compbniiu which offer good rater which ar onl av i able to specific groupv. Thjsj are not quoted. For example, Th Royal National Pens on Fu^d for Nurses. CPA NnnALjy RatTs: Mali 26 CPA Annuity Rates: Female 263 CPA Joint Life Rates 26 Purchased Life Annuities 265 BBC CJJFAX FRONT PAGE 100 CPA men YourMonjy City News Main MenuP261 CEEFAX 2 261 Fri 24 Jan 42z22/07 1/8 ] R An amnuitu provides a regular lifetime income from a lump sum investMent. @ There are two types: @ 1/C mp ls ry P as A nu (CPA) ThjsjQari bought from pjnsjon funds. Normally pension hlans allow you to buy a bert r ann t f om anothi life eirK. ThUs@i3 the Open Matkjj Option. @ @ PJBw etUQboughtRwiji y#uj ow^QcatjtelQ pnd pro6iu5 p RT d h p p 0 0 Sport @ 300 Front Page Q00 CPA Ken@ YK5tMK.e9 Cijy Nees JajF MamS