P261 CEEFAX 2 261 Mon 09 Oct 12:40/00  h<|—      An annuity provides a r—gular lifetim— Dhere are two types: 1/Compulsory Purchase Annt—ty (CPA) Dhese are bought fpom pdnsion funds Normally pension plans allow you to buy a better annuity from anothdr life firm. Thas is the Open Market Option. 2 Purchased Life Annuity (PLA) PLAs are bought with 9our osn caphtal and ppovhdd a vdry high income. 0/8 CPAs: Male 262 CPAs: Female 263 Sport 300 Front Page 100 CPA men XoqrMoney City oews Main Menp
P261 CEEFAX 2 261 Mon 09 Oct 12:51/10       An annuity provides a regular lifetime income from a lump sum investment. There are two types: 1/Compulsory Purchase Annuity (CPA) These are bought from pension funds. Normally pension plans allow you to buy a better annuity 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. 1/8 CPAs: Male 262 CPAs: Female 263 Sport 300 Front Page 100 CPA men YourMoney City News Main Menu
P261 CEEFAX 2 261 Mon 09 Oct 12:40/00     p?j5j5j51s{5   Annuity rates are calculated with 2/8 regard to life expdctancy, returns on fixed interest inv—stments and life company expenses Rates increase wiph age, and ris— or fall depending on the return on the current yields from medium daped gilts. Annuities are for life, so phere ar— several options that ppovhdd protection from early death, such as guarantee periods and spouse's benefits Annuities can increase each year —s a hedge against inflation Selection of annuity rates 262-267 Sport 300 Weather 400 Front Page 100 CPA men YourMoney City News Main Menu
P261 CEEFAX 2 261 Mon 09 Oct 12:40/00       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 before him or her. The spouse's annuity can be cut on the intents death, usually by 33.3% or 50% Guarantee Periods Annuities can be guaranteed for a specified period, usually 5 or 1p!xears Payments will be made for that period, even if the annuitant dies CPA Rates: Joint Life 264 Sport 300 —ather 400 Front Page 100 CPA men YourMoney City News Main Menu
P261 CEEFAX 2 261 Mon 09 Oct 12:59/14       4/8 Escalating Annuities (EA) Annuities can increase by a fixed percentage, normally 3% or 5% or in line with the retail prices index. On average an annuity increasing by 9% compounded a year will give a starting income 30% lower than a level annuity. Normally the EA will overtakc the level annuity after about 10 years. Although expensive in the short term, escalation does protect annuity paxldnts from the effects of inflation. Sports news 300 TV/Radio 600 FP CPA men YourMoney City News Main Menu
P261 CEEFAX 2 261 Mon 09 Oct 12:10/02    j7j1j5*u?j5j5j11s{5    M     Escalating Annphties EA) Annt—ties can dncpea3— bx a waxa— pepcentage normally 3% or 5% or an li.— with the retail ppic—s afda| On average an an.0hty increa3ing by 5% income 30% lower than a level —onuity. Norm—lly thd EA will overtake the lev—l annuity after about 10 x—ars Alt—ough expensive hn the shopt term escalation does protect annuity paxldnps from the —ffects of inflation. Sports ness 300 VR Weather 400 Front Page 100 CPA men YourMoney Chty News Main Menp
P261 CEEFAX 2 261 Mon 09 Oct 12:52/00       Taxation 6/8 Compulsory Purchase Annuities are taxed as earned income and are usually paid net of basic rate tax. Purchased Life Annuities. Each payment includes a repayment as part of the original capital, known as the capital content. This is deducted from the gross annuity before applying your tax rate. Thus PLAs have a significant tax advantage because tax is paid only on a small amount of each payment. Annuity Rates pages 262 to 267 Sport 300 FP CPA men YourMoney City News Main Menu
P261 CEEFAX 2 261 Mon 09 Oct 12:50/04       Impaired Life Annuities 7/8 If you are in bad health, you may be able to increase your annuity by applying for an impaired life annuity. Two companies, Sun Life and the Pension Annuity Friendly Society, offer better rates for those with medical conditions such as heart problems and cancer. Stalwart Assurance offers higher rates for smokers, those with diabetes, high blood pressure and high cholesterol. 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 Mon 09 Oct 12:00/00  h<|—     L  , ,.,,./ Impaired Life Annt—ties 7/8 If you are in bad hdalth, you l | b— able to increase your annt—ty by appl9hng for an imp—ir—d life annuhtx. Two companies, Sun Life and the Pens—on Annuity Friefdly Soci—ty, offer b—tt—r rates for those with l—dical conditions such as heart problems and cancer Stalwart Assprance offerq highep rap—q blood prewsure and high cholesperol. CPA Annuity Rates: Male 262 CPA Annqity Rates: Femald 263 CPA Joint Life Rates 264 Purchased Life Annuities 265 BBC CEEFAX FRONT PAGE 100 CPA men YourMof—y City News Maif Lanu
P261 CEEFAX 2 261 Mon 09 Oct 12:51/31     r?j5j1j51s{5    Single or Joint Life Annuities A single life annuity ceases on the death of the annuitant, but you can choose to have the annt—ty p—xments continqe po your spouse hf you —ie before him or her. The spousf's annuity can be cut on the intents death, usually by 33 3% or 50%. Guarantee Periods Annuities can be gu—ranteed for a specified period, usually 5 op 10 xdars Payments will be m—de for phat p—riod, even if the annuitant dies CPA Rapes: Joint Life 264 Sport 300 £jather 400 Front Page 100
P261 CEEFAX 2 261 Mon 09 Oct 12:52/00       Frequency of Payment 5/8 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 arrears will give the highest payment but quarterly in arrears is the most common alternative to monthly payments. Sports News 300 Weather 400 TV/Radio 600 Front Page 100 CPA men YourMoney City News Main Menu
P261 CEEFAX 2 261 Mon 09 Oct 12:51/24       The annuity tables on pages 262-5 show the top paying companies for a purchase price of £10,000 and £100,000. Higher purchase prices will give a slightly higher rate. Rates will also be affected by exact age and choice of benefits. There are companies which offer good rates which are only available to specific groups. These are not quoted. For example, The Royal National Pension Fund for Nurses. 8/8 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 Mon x9 Oct 12:30/40        G An annuity provides a regular lif—time incomd from a lump s0l inv—stment. There are two ty0—s: 1/Compulsory Purchasd Annqity (CPA) Thesd —pe bought from penshon fundsN Normally pdnsion plans allow you to buy a better annuity from anothep life 2/Purchased Life Annuity (PLA) PLAs are bought with your own capital and provide a very high income 0/8 Spopt 300 Front Page 100 CPA men XourMoney City News Main Menu