Graph Notes
The Annuity Income

The annuity income shown is the gross annual income for a man aged 65 with a pension fund of £100,000. The income is payable with:

• 3% increases in payment each year. (Escalation)
• A partner's pension of 50% (based on a wife aged 62).
• Monthly instalments with the first instalment payable one month after inception.
• A guaranteed period of 5 years.

Points to note

The annuity illustrated includes optional features which are valuable in the right circumstances, but expensive to provide. It is important to select the right options to ensure you get the best value for money. We do all the research for our clients. For further information, please contact us.

The Gilt Yield

The gilt yield shown is the FT Actuaries Government Securities UK 15 Year Gilt yield. Source: The Financial Times. This yield is a traditional indicator for annuity rate movements and is currently used by the Government Actuary's Department in setting the minimum and maximum income limits for Income Drawdown pensions.

Source: FT (2005)