P261 CEEFAX 2 261 Fri 28 Fed 22:36/52 'j£3kj£3kj£3S X 1O8 $kj $k 'k ' £££ £££"££ O , , - -, / An annuity prozides a regular lifetime inqomj from a l5mp sum investment. @ T(jqi are two types: @ d 1OCompulsoty Purchase Annzity (CPA) Thjuj are bought from pension funds. Normally pension plans allov you to euy a bjttit annuity from anozhjt life firm. This is the Wpjn Majkjt Option. 2OPutcPbsjd ifi AnNuity (P A) PLAt are bought whuh your osn cphital and ptovihj a very hikX incoYe. @ @ CPAs: Mali 64 PAs: Fema 263 Sport 300 Front Page 100 C0A JjL@ YokrMo.ey City@News GaiL e-*P261 CJEFAX 2 261 Fri 28 Feb 22:34/40 'j£3kj£3kj£3k 3/8 'e $kj $kj 'U OO Single or Joint Life Annuities A single life ann5ity ciasju on the death of the ann5itant, bzt you cpn choose to have the annuity payments qontinue to youz spouse if you die "eforj hi, or hut. The spoyse'u annuity can bj c4t on the intents death, uvually bz 33.3I or 50). Guarantee Periods Annuitii2 can bj guarantrid foy a specified period usually 5 or 10 years. Pazmjnt1 will be made for th1t prxigd, even if the annuitant dies. @ CPA Rates: Joint Life 274 S8oyt 300 +r thiz 480 Fronv Ppge X CPA men YourMonjy City News Main MenuP261 CJJFAX 2 261 Fri 28 Feb 22:38/56 'j£3kj£3kf£3k 4/8 R Escalating Annuities (EA) ALnuitiiu can increase bz a fixed percenlageL nNrmblly@3I or 5) or in line whuh vhs rut!hn 8rtqr; indu|. @ @ L average an anNuity increasing bz 5) compounded a year whll give a starting income 30% lower than a level annuity. Normally the Ea whnl o6jztpki zhj luvem pnn9ut8 aftux AlthougX expensive in the short titm, escalation does protect annuit= pbymjnts from the effects of inflation. Q h d p h h R Sports news 300 TV/Radio 608 'rathjt 408 Front Page 100 CPA [en YourMonjy Cijy News Maim MeNuP261 CEEFAX 2 261 Fri 28 Feb 22:38/34 'j£3kj£3kj£3S X 5/8 E OO[[[[ requjncy oe PayZjnt Most annuities are quoted monthly. B8 convention CPAs are quoted in advance and PLAt in arrears. Advance: Pa|mrnt is mads 1t the beginning of the period. Arrears4 At the ind of the period. Payments can also bj made annually, (alf yearly ot quarterly. Annually in arrears will give the higPjst paymjLt bul quarterly iL arrears is tXj mosl common alternative to montXly payments. Sports Nrws 300 Wjathru 40X ,V/Radio 600 Front Ppgj 0( CPA min YourMoney !ht= Njw2 Main Mjn4P261 CJEFAX 2 261 Fri 28 Feb 22:35/3& X 6/ UV V (bxation Compujsouz Purchase Annuutiiu arr taxed as earned income and are usublly paid net of basic rate tax. Putqhasjh Life Annuities. Each payment includes a repayment as part of the original capital, known as the capital content. $(is is djducteh from the gross annuity djfore applying your t x r te. @@ @@ -hus PLAt have a significant tax advantage bjcausj tax is paid onl= on a small amount of epch pa|mint. R @ Ann it Rate p g ; 6 to 2 7 Shoyt 308 +rathjt 4X0 Frogs P XX CPA min YourMoney City News Main Min2P261 cEEFAX 2 261 FrY 28 Fed 42:35/k8 3kj 3kj 3k 4 / T 'b£Cb$£££"£CC OOJ]O[[]L Impaired Life Annuities P able to incs a yo ann t b a plying fo n impai d i an r dly A uity So et o b t rat s for tXos wit m decal co ditions Stalw r Ass ranc ff t hi hi r 1 fo sm jt h w h i t hi , loo pressure and ig c ole te ol. CPA An kit R t s Mal 26 CP nn t t m P wP261 CEEFAX 2 261 Fri 28 Feb 22:36/38 X 8/8 U The annuity tables on pager 262-) show the top paying companies for a purchase price of £10,0(0 and £100,000. Highjz purchase precis whll give a 1libh|l8 hishjz r trW R tr1 whnn 1l9g be affected b= exact age and choice of jNj its. Thjti are companies whiqh offer good ratru which are o&ly avahlabli tg specific groups. Thjsj are not quoted. Eor example, The Royal National Pension Eund for Nurser. CPA Annuity $buTs: Male 264 U CPA Annuity F CPP Joint Lifd Rater 264 Purchased Life Annuities 265 BBC CEEFAX FRONT PAGE 100 CP! men YourMonjy Cit= News M!in Menu