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SAMPLE STANDARD ANNUITY RATES The link below is NOT part of pensionadvice web site. It will take you to the "Tables" section of the FSA web site for consumers - "Money Made Clear" You can enter your own details and get comparisons of current annuity rates. These should only be used as a guideline. You should always take specific advice before you commit yourself to any annuity or pension. http://www.fsa.gov.uk/tables/model/model_annuities.jsp?
Better rates can be obtained for smokers, certain postcodes, past higher risk occupations and many health conditions. Make sure you explore all options before committing yourself to something that will be fixed for the rest of your life. As a general guide for a male aged 65 choosing a level pension paid monthly in arrears a 5 year guarantee would cost 1/2% of the pension and a 10 year guarantee 2.5% A ten year guarantee with full index linked increases and a 50% pension would cost 36% so a £1,000 per annum pension would be reduced to £640 before the annual RPI increases started.. A "With Profit" annuity will typically assume anticipated Growth Rates of the underlying investments of 3% to 4%. This means that if the investment returns are less than this the annuity will be less than could have been purchased as a conventional annuity whereas a better return would produce an increased pension. In all other respects a with profit annuity is the same as a conventional one.
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