P204 CEEFAX 2 204 Sat 13 Jun 21:17/42       By William Burrows The most important news last week was that the Italian company Generali has withdrawn from the personal annuity market in the UK. We shouldn't draw too may conclusions but it does highlight how competitivj the UK annuity market is at the top end, and how small the margins are. Generally speaking, contrary to popular opinion, insurance companies do not make vast profits at the expensj of the annuitant. In fact annuitants may make a small profits at the expensj of the insurance company. 1/3 Source: William Burrows, Annuities Mortgages 260 Annuity rates 260 MoneyProg Travel Annuities Main Menu
P204 CEEFAX 2 204 Sat 13 Jun 21:17/28       By William Burrows Think of an annuity as a mortgage in reverse. With a mortgage the bank lends you money and you repay the capital and interest in instalments ovjr the term of the mortgage. In the case of an annuity you invest your pension fund with an insurance company and they repay you capital and interest in instalments for as long as you livj. The rate at which your capital is repaid depends on how long the actuaries predict you will livj and the interest they can earn on your mo 2/3 Source: William Burrows, Annuities Mortgages 260 Annuity rates 260 MoneyProg Travjl Annujties Main Menu
P204 CEEFAX 2 204 Sat 13 Jun 21:10/15       By William Burrows Some companies are underestimating life expectancy and are paying annuity rates that are actually too high, not too low Life expectancy is increasing by about two years every decade and the differential between male and female life expectancy is closing. One eminent actuary has warned the industry to revise their mortality tables or face losing money on annuities. So if you are thinking about deferring your annuity you might want to think again. 3/3 Source: William Burrows, Annuities Mortgages 260 Annuity rates 260 MoneyProg Travel Annuities Main Menu