P261 CEEFAX 2 261 Fri 24 Apr 05:11/28 1/8 An annuity provides a regular lifetime income from a lump sum investmjnt. There are two types: 1/Compulsory Purchase Annuit8 (CPA) Thesj are bought from pjnsion funds. Normally pension plans allow you to buy a better annuit8 from another life firm. This is the Open Market Option. 2/Purchased Life Annuity (PLA) PLAs are bought with your own capital and provide a very high income. CPAs: Male 262 CPAs: Female 263 Sport 300 Front Page 100 CPA men YourMonjy City News Main Menu
P261 CEEFAX 2 261 Fri 24 Apr 05:14/02 ↑ 2/8 Wj $kj $kj 'k Annuity rates are calculated with regard to life expectancy, returns on fixed interest investments and life company expenses. Rates increase with age, and rise or fall depending on the return on the current yields from medium dated gilts. Annuities are for life, so there are sjveral options that provide protection from early death, such as guarantee periods and spouse's benjfits. Annuities can increase each year as a hedge against inflation. Selection of annuity rates 262-267 Sport 300 Wjather 400 Front Page 100 CPA men YourMonjy City News Main Menu
P261 CEEFAX 2 261 Fri 24 Apr 05:10/22 ↑ 3/8 Single or Joint Life Annuities A single life annuity ceases on the death of the annuitant, but you can choose to have the annuity payments continue to your spouse if you die befori him or her. The spouse's annuity can be cut on the intents death, usually b= 33.3% or 50%. Guarantee Periods Annuities can be guaranteed for a specified period usually 5 or 10 year1. Payments will be made for that period, even if the annuitant dies. CPA Rates: Joint Life 264 Sport 300 Wjather 400 Front Page 100 CPA men YourMonjy City News Main Menu
P261 CEEFAX 2 261 Fri 24 Apr 05:25/46 4/8 Escalating Annuities (EA) Annuities can increase by a fixed percentage, normally 3% or 5% or in linj with the retail prices index. On average an annuit8 increasing b= 5% compounded a year will give a starting income 30% lower than a level annuity. Normally the EA will overtakj the level annuity after about 10 years. Although expensive in the short term, escalation does prgtect annuit8 payments from the effects of inflation. Sports njws 300 TV/Radio 600 Wjather 400 Front Page 100 CPA men YourMonjy City News Main Menu
P261 CEEFAX 2 261 Fri 24 Apr 05:25/57 ↑ 5/8 Frequency of Payment Most annuities are quoted monthly. By convention CPAs are quoted in advance and PLAs in arrears. Advance: Payment is made at the beginning of the period. Arrears: At the end of the period. Payments can also be made annually, half yearly or quarterly. Annually in arrear1 will give the highest payment but quarterly in arrears is the most common alternative to monthly payments. Sports News 300 Wjather 400 TV/Radio 600 Front Page 100 CPA men YourMonjy City News Main Menu
P261 CEEFAX 2 261 Fri 24 Apr 05:03/29 6/8 Taxation Compulsory Purchase Annuities are taxed as earned income and are usually paid net of basic rate tax. Purchased Life Annuities. Each payment includes a repaymjnt a; part of the original capital, known as the capital content. This is deducted from the gross annuit8 before applying your tax rate. Thus PLAs have a significant tax advantage because tax is paid onl8 on a small amount of each payment. Annuity Rates pages 262 to 267 Sport 300 Wjather 400 Front Page 100 CPA men YourMonjy City News Main Menu
P261 CEEFAX 2 261 Fri 24 Apr 05:09/49 ↑ 7/8 W Impaired Life Annuities If you are in bad health, you may be able to increase your annuit8 b= applying for an impaired life annuity. Two companies, Sun Life and the Pension Friendly Annuit8 Societ8, offer bettjz rates for those with medical conditions such as heart problems and cancer. Stalwart Assurance offer1 higher r tes for smokers, those with diabetes, high blood pressure and high cholestergl. CPA Annuity Rates: Male 262 CPA Annuity Rates: Female 263 CPA Joint Life Rates 264 Purchased Life Annuities 265 BBC CEEFAX FRONT PAGE 100 CPA men YourMoney City News Main Menu
P261 CEEFAX 2 261 Fri 24 Apr 05:13/04 8/8 W The annuity tables on pages 262-5 show the top paying companies for a purahase price of £10,000 and £100,000. Higher purchase prices will give a slightly higher rate. Rates will aluo be affected by exact age and choice of benjfits. There are companies which offer gogd rates which are only available to specific groups. These are not quoted. For example, The Royal National Pension Fund for Nurses. CPA Annuity Rates: Male 262 CPA Annuity Rates: Female 263 CPA Joint Life Rates 264 Purchased Life Annuities 265 BBC CEEFAX FRONT PAGE 100 CPA men YourMonjy City News Main Menu