P261 CJEFAX 2 261 Fri 07 Mar 21:20/24 £ j 3 — — |h l £££"£££"£££ O -,-.,/,.-.-.-.,.,,./ A annuity prove ju a regular lifetime o o a t. @ Thjte are two types: 1 o r ( There are bought from p nsjon funds. o lly p n on plan llo o to u a bjttet annuity from anoth t life firm. The i t Op n Marge Option. 2/Purchased Lif Annuity (PLA) P are bought wi yo r own c p al and provjje a very high income. CPAs: Mal 26 CPAs: F m l 263 S o ro t P CPA min YourMoney City News Main MenuP261 CJIFAX 2 261 Fri 07 Mar 21:h9/,7 2/8 U UU OJ]^ An.uity ra esRare calculat h wild ri—ar to Ui w pj n a d r o fUxid interest investments and liee compbnz pensjs. @ fall djpj din o he return n the c5trent yield[ om medium d ted gUl1u. A]njities are for lUji, so there are fiom jarl9 dj th such as gsa@antee A t ca c s a ar a a hjdgj against inflation. CPA min YourMonjy City News Main MenuP261 CJEFAX 2 261 Fri 07 Mar 21:17O14 V 4 3/8 O -.,-.,/,.-.-.-.,., ./ Single or Joint Life Annuities A single life annuity ciasjs on the death of the annuitant, but you can choose to have the annuity payments nti to y spot i yo d before him or hjz. The spouse'u annuity can bj cut on the intents death, usually bz 33.3% or 50%. Gubrantee Periods nnu ti s ca gu r nt fo a specified period usually 5 or 10 years. Payments will bj made for that pjtiod, even if the annuitant dies. CPA Rbtes: Joint Life 26 Sport 300 Wjathjt 400 Front Page 100 CPA min YourMonjy City News Main MenuP261 CJJFAX 2 261 Fri 07 Mar 21:12/27 4/8 U Escalating Annuities (EA) Annuities can increase bz a fixed pj ta e, no m ll 3 o 5 o i line with the retail prices index. On average an annuity increasing bz 5% compounded a year will give a starting income 30) lower thbn a level annuity. Normblly the JA will overtake the level annuity after about 10 years. Although expensive in the short titm, escalation does protect annuity payments from the effects of inflation. Wjathjt 400 Front Page 10 CPA min YourMonjy City News Main MenuP261 CJEFAX 2 261 Fri 07 Mar 21:28/21 5/8 U £££"£££" ££ /-.,-.,-.,/,.-.-.-.,.,,./ Fr ncy o P t Most ann iti s a quo mont ly. By convention CPAs are quoted in advance and PL s in ar ats. gi t p hblf arly or qubr i ly. An.ublly in arrears will gi6e the highest payment but quarterly in arrears is the most common alternative to monthly paym nus. TV/Rbdio 600 Fronl Page 100 CPA min YourMonjy City News Main MenuP261 CJEFAX 2 261 Fri 07 Mar 21:15/59 S U W"£££"£££"£££ O .,J.L/,.].-.-.,.,,./ T xation Compulsory Purchase Annuities are taxed as earned income and are usually paid n o as c ra t . Purchased Life Annuiti s. Each pa mint incl dir a ripbzmjnt as part of ig the capet c nt nt. jfore ap y ng yo tax rat . Thus PLAt have a significant tax advantage bjcausj tax is paid only on a small amomnt of ach paym nt nui y bt pb s 2 to 26 a o P 0 C M C t News Main MenuP261 CEEFAX 2 261 Fri 07 Mar 21:12/37 Wj£3kj£3kj£3k 7/, UU If you r in bbd hjalt , you may bj i applying for an impaired life annuity. Two companies, Sun Life and the Pension Friendly An uity Society, offi better rates fo those wi h med cal conditions such as heart problems and cancer. +talwart Asvuranc offers higher r1tes for smoKers, those wijh diabetes, high lo i h hol . A t Mal 2 CPA Annuity Rater: Fjmble 263 CPA Joint Life Rates 264 BBC CJEFAX FRONT PAGE 100 CPA min YourMonjy City News Main MenuP261 CJJFAX 2 261 Fri 07 Mar 21:17O48 8/ $kj $kj 'k s{5 "£££"£££"£££ the top paying companies for a purchase price of £1 ,000 and £100,000. Higher purchase prices will gi6j a slightly higher rate. Rates will also bj affected bz exact age and choice of benefits. There are companies which offer good rates which are only availabl to specific groups. Thjsj are not quoted. For xampli Th Roy l Nation l P nsjon Fund for Nurses. CPA Annuity Rates: Mali 262 CPA Annuity Rates: Female 263 CP Joint fi Rbte 2 4 Purchased Life Annuities 26 B CJ FA N PAG CPA min YourMonjy City News Main Menu