P261 CJEFAX 2 261 Fri 31 Jan 21:04/27 1/8 U An annuity provides a regular lifetime income from a lump sum investment. The i re two types: 1/Compulsory Purchase Annuity (CPA) There are bought from pjnsjon funds. Normally pension plans allow you to buy a better annuity from another life firm. This is the Open Market Option. C /Put hasjd L f nnujty PL ) PLAt are bought with your own capital and provide a very high income. Sport 3 0 Front Page 100 CPA min YourMonjy City News Main MenuP261 CEEFAX 2 261 Fri 31 Jan 21: 5/17 Wj£3kj£3kj£3k 2,8 j $kj kj 'k j j5j5*u?j5j5j52s 5 t fSxuL /te nvALt ts aE fA Rates i r a j w zh a 1n4 sj o2 fall depend ng on the ru urn on the i RpRR42T p 4 RUT Annuit s e fo life o there arr SenUiali from(early ct @su v0oub antiea pjtioms and spot j's benefits. e GROSd!ANNgai AN RITZ FOR £ S0 rce:(it 40t Dint P CA womn NMons City News Main MenuP261 CEEFAX 2 261 Fri 31 Jan 21:08/21 3/8 j52s{5 W"£££"£££"£££ O Single ou Joint Life Annuities A ngli lif an uity c as o th d at o t a i a t u yo can choose to have the annuity payments con ins to ou poss if you di jfore him or her. @ The spouse's ann ity can bj cut on the intents death, usually bz 33.3% or 50%. Guarantee Periods Annujtieu can be guarantied for a specified period usually 5 ot 10 years. Payments will bj made for that Xetioh, even if the annuitant dies. CP at : Joint f 264 Sport 300 Wjathjt 400 Front Page 100 CPA min Y#urMoney City News Main MenuP261 CEEFAX 2 261 Fri 31 JanC21:12/28 4/8 Escalating Annuities (EA) Annuities can incteasj bz a fixed pjrcintagj, normally 3% ot 5% oz in line wi h the r tail prices index. On avjlage an ann62ty inc 7as ng bz 5% compound d a jar will gi j a st ruing income 30% lower than a level annuity. G o ll a annuity after about 10 years. Aljhough jxpjnsjvj in the ho t term, escalation does protect annuity payments from the hffeits of infl tion. Wear jt 4 0 Fro t Pag 0 o j it N w M in M uP261 CEEFAX 2 261 Fri 31 Jan 21:13/17 5/8 Frequency of Payment o o CPAs ar uo h i dv n and PL s in arr ats. Advance: Payment is made at the beginning of the period. Ar ears: At the nd of the iod. Payments can also bj made annually, hblf yearly or quarterly. Annually in arrears will give the highest payment but quarterly in arrears is the most common alternative to m nt ly p m nt p ts N w 300 a h 40 TV/Radio 600 Front Page 100 CPA min YourMoney City News Main MenuP261 CEEFAX 2 261 Fri 31 Jan 21:16/14 j£ j j —<t h4| 4 /8 U -.,-.,-. /,.-.-.-.,.,,./ Tbxation Compulsory Purchase Annuities are tax d as rnjd income and are usu lly t r d f t Each pbymjnt includes a repayment as part of the original capital, known as the capital content. This iu deducted from the gross annuity before applying your tax rate. Thus PLAt have a significant ta| advantage bjcausj tax is paid only on a small amount of each payment. Annu ty R sis pa 26 to 267 CP m ou on y C ty N ws Ma n M nuP261 CJJFAX 2 261 Fri 31 Jan 21:21/38 j£ kj£ j£3k — —< h |h4l<h4 / U O Imp jrid Life annuities If you are in bad health, you ma= Rj a p n o n i pair d li u Two companies, Sun Life and the Pension Friendly Annuity Society, offer bette2 rates for those with medical conditions such as heart problems and canc . Stalwart Assurance offers higher rates Sot mo e s, th e wit diabe , i h blood pr ssjre and high choleut ol. CPA Annuity Rbtes: Mali 26 CPA Annuity Rater: Fnmale 263 Purchased Life Annuities 265 B C CJJFAX FT PAGE CPA jn Your o jy City News Main M nuP261 CEEFAX 2 261 Fri 31 Jan 21:15/07 Wj£3kj£3kj£3+ X 8/8 WE£££"£££"£££ J[[ Che annORt U1ClAu R 8Qg:s 26 5 2ow price of £10 0( and@£ ,000. Hianux d h 5e er2 l fe £ 6 e w 24 benefit Thdows £ 6 7f8 od jcUMSc@ # p T U U Bte \ j #t i CPa Joint Jifi ZQteu 264 Purchased Life Annuities 265 B!C CJJFAX FR NT@PAGE 10P CPA min Yo NMoney City News Main Menu