Did you know

The difference between best and worst conventional annuity providers’ rates can easily be as much as 18% – for example £6,000 p.a. could become £7,080 p.a. A difference which could amount to £28,500 or more over a typical retirement period.

Fact

·        You cannot change your annuity provider once you have bought your annuity.

·        The average income improvement we achieved for our clients during 1/02/06 to 31/01/07 was 16%.

·        The average life expectancy for a 60 year-old male is over 20 years and for a female, it is over 23 years.1 *Source: GAD Interim Life Tables 2006

·        Only 6% of pensioners bought any form of enhanced annuity in 2006. (Source: ABI 2006)

·        Nationally, 14% of the population over age 60 are smokers. (Source: Office of National Statistics 2004/05)

·        Over 364,000 annuities were purchased in 2006. (Source: ABI 2006)

·        In 2006, around 2/3rds of people bought a conventional annuity with their existing pension provider. That is, approximately 240,000 retirees could have missed out on higher annuity rates by sacrificing their Open Market Option. (Source: The Annuity Bureau - based on ABI data for 2006)

·        Today’s retiree has a greater choice of conventional and investment linked annuities and income drawdown, than ever before.

Top personal pension annuities

Notes: Figures assume an annuity purchase price of £100,000 and are shown as gross annual income, paid monthly in arrears. Smoker rates are based on someone who smokes an average of 20 or more manufactured cigarettes a day. Impaired rates are based on someone who recently suffered cancer and is receiving Chemotherapy. Medical evidence is required for an impaired life annuity. Rates as at June 2007.

Source: The Annuity Bureau.