UK Annuities: FSA REGULATED SITES • QUALIFIED, TRUSTWORTHY ANNUITY ADVICE

Centralising Your Pension Annuity Search

These well-known and trusted brands represent a selection of possible pension annuity providers and income drawdown providers. Please scroll down to visit a choice of FSA registered annuity advisers that are fully authorised to advise on and sell annuities for these companies...


Legal And General Annuity Liverpool Victoria Annuity Reliance Mutual Annuity Just Retirement Annuity Aviva Annuity Canada Life Annuity Axa Annuity
Prudential Annuity MGM Annuities Partnership Annuity Hodge Lifetime Annuity Aegon Scottish Equitable Annuity Scottish Widows Annuity Standard Life Annuity
BUT FIRST, SOME IMPORTANT INFORMATION THAT COULD BOOST YOUR RETIREMENT FINANCES Have you taken out a credit or store card, mortgage, secured loan, unsecured loan or hire purchase agreement in the last 10 years? If you have (or have had) a mortgage, loan or credit card with providers such as Barclaycard, Abbey, Santander, Littlewoods, MBNA, Halifax, HSBC, HBOS, Lloyds, Natwest, RBS or in fact any other credit provider, you may be able to reclaim up to £15,000 if you were sold PPI insurance - in most cases even if you have lost the paperwork. Learn more about PPI Claims now!


annuity comparisons Visit Annuity Base

Using specialist annuity industry search software, an FSA registered Independent Financial Adviser will query top annuity and annuity alternative providers' databases to help you compare and choose which one is the best for you.
Visit Annuity Base FSA Number 501272

annuity comparisons Visit Annuity Comparisons

Why would you use an automated annuity comparison website when an FSA authorised, qualified pension consultant can advise you which is the best annuity for free with no obligation to buy? There are many reasons why you should not trust your future income to comparison tables on faceless sites. In some matters you need absolute certainty.
Visit Annuity Comparisons FSA Number 217994

annuity comparisons Visit Open Annuities

You could increase your annuity by thousands. Make sure you recognise the best annuity advice when you get it. The more information about annuities you have, the more able you will be to recognise the best annuity advice when you receive it.
Visit Open Annuities FSA Number 501272

annuity comparisons Visit Annuities Extra

Pension annuities for those of us who are not in the best of health. If you've a health problem, no matter how small or insignificant you think it is, you'll stand an increased chance of a higher annuity income.
Visit Annuities Extra FSA Number 150427

annuity comparisons Visit The Enhanced Annuity

Specialists in enhanced annuities. It is estimated that up to 40% of the UK population could boost their pension annuity income with an "enhanced annuity".
Visit The Enhanced Annuity FSA Number 483817

annuity comparisons Visit Pension Annuities Plus

Your annuity income may increase if you have had certain conditions such as high blood pressure, asthma or high cholesterol. This is also true for smokers and for those who have worked in certain occupations. Get pension annuity comparisons now.
Visit Pension Annuities Plus FSA Number 483817

annuity comparisons Visit Smokers Annuities

Your lifespan as a smoker and your annuity options. We're sorry to be blunt, but you most likely already know that smokers, in general, have shorter lifespans than non-smokers. Of course annuity providers are well aware of this unfortunate fact of life. Increase your annuity now.
Visit Smokers Annuities FSA Number 483817

annuity comparisons Visit Simple Annuities

Finding an annuity does not have to be difficult. Pension annuity retirement finance experts with vast experience of annuities are waiting to help you. Compare pension annuities and annuity alternatives now.
Visit Simple Annuities FSA Number 483817

annuity comparisons Visit Annuity Answers (Welcomes Pension Funds Under £30,000)

Why should the pension annuity buyer beware and why do so many retirees ignore a much bigger annuity income? Compare annuities now.
Visit Annuity Answers FSA Number 483817

annuity comparisons Visit The Female Annuity

1000's of women retire every week in the UK. Compare annuities for women and their alternatives.
Visit The Female Annuity FSA Number 460094

annuity comparisons Visit Pension Annuity Plan

Compare pension annuities and their alternatives. Get thorough advice in choosing the right annuity plan.
Visit Pension Annuity Plan FSA Number 460094

annuity comparisons Visit Annuity Pathway

Your simple pension annuity journey. How you might take the wrong annuity route and lose the annuity income that is rightfully yours.
Visit Annuity Pathway FSA Number 460094

annuity comparisons Visit Just One Bite Annuities

How a pension annuity will affect your life. You will only get one bite of the annuity apple. Once you buy an annuity, there's no going back.
Visit Just One Bite Annuities FSA Number 460094

annuity comparisons Visit Pension Annuity Planner

This company will increase your standard pension annuity through enhanced annuities.
Visit Pension Annuity Planner FSA Number 460094

What actually is a pension annuity?


(Please note that the following is not intended as advice and an FSA registered broker should be consulted before making a decision regarding pension annuities and annuity alternatives)

A conventional pension annuity is an arrangement where you make a lump-sum investment. From this investment you'll receive a guaranteed level of annuity income. There are also alternative forms of annuities that provide a greater degree of flexibility. Most annuities are bought using funds held in money purchase pension schemes.

So basically, an annuity converts a savings fund into income and that income will be paid to you as long as you live.

Pension Types?
  You can buy an annuity if you have one of the following pension types:

 1. Personal Pension
 2. Stakeholder Pension
 3. Retirement Annuity Contract (RAC)
 4. Most Free Standing Additional Voluntary Contribution Scheme (FSAVC)
 5. Most Additional Voluntary Contribution Schemes (AVC)
 6. Group Personal Pension (GPP)
 7. Section 32 Policy (Buy Out Bond)
 8. Occupational Money Purchase Scheme

With an Occupational Money Purchase Pension, the trustees may buy your annuity for you, but if you think that their annuity choices don't suit you, you can shop around for a better annuity using the open market option.


An annuity is payable for your lifetime after purchase, although it's possible to select a fixed period if purchasing an annuity with cash rather than pension funds.

An example of this type of "Compulsory Purchase Annuity" is a conventional annuity, with profit annuity and unit linked, or 3rd way annuity. An annuity that is purchased from savings, not from a pension scheme is referred to as a Purchase Life Annuity or Immediate Vesting Annuity.

This could be one of the biggest financial decisions you'll ever make, so ensure that you maximise your annuity income. Once you buy an annuity you can't change your mind so you need to make sure you get it right first time.

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Types of Annuity: Tailored to suit you personally

There are a wide range of options which can be selected when choosing an annuity plan. The most widely used annuity options are listed below.

Minimum Term

Annuity income is guaranteed to be paid until the death of the annuity holder, but it can also be modified to include any of the following options:

• 5-year guaranteed annuity - annuity ceases at death of annuity holder, or after 5 years, whichever is the longer

• 10-year guaranteed annuity - annuity ceases at death of annuity holder, or after 10 years, whichever is the longer

• Joint life annuity - annuity ceases on the death of the second of two named annuity holders

Spouse Benefits

Your spouse, partner or dependant can be protected after your death by choosing one of the following options:

• Reduction to half benefit,
• reduction to two thirds benefit or
• full benefit

The annuity is thus adjusted to the new level at the death of the annuity holder or at the end of the guarantee period (if selected) and continues until the death of the spouse, partner or dependant.

Escalation

An annuity can either be paid at a fixed level or can include an escalation at 3%, 5%, or at the RPI percentage (annual increase in the retail price index). You can thus choose to compensate for any inflationary effects on your income. However, your initial income level will be reduced if you choose escalation. Your specialist annuity adviser can look at a range of annuity options for you to help you decide on the best option for your individual circumstances.

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Purchased Life Annuity: An annuity with a difference

A purchased life annuity is an annuity purchased with your own funds, as opposed to from a money-purchase pension fund. It operates in the same way as a compulsory purchase annuity, but it does have tax advantages over a conventional annuity.

The entire pension that you receive from a compulsory purchase annuity is treated as taxable income in the same way as income from any normal employment would be. However when you buy a purchased life annuity, that part of the annuity income, which is calculated as capital repayment to you, is tax-free. Only that part of your annuity income that is interest paid on your investment is taxable.

With similar annuity rates, the effect of this tax treatment of a purchased life annuity, for a basic rate tax payer from a £200,000 investment would be to increase their net annuity income by approximately £200 per month.

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Take advantage of The Open Market Option

The open market option allows those who retire to shop around for different ways to convert their pension funds into an annuity, as opposed to just accepting the annuity rate offered by their pension provider.

When your pension fund reaches maturity, your pension provider will advise you of the fund value and give you general information about annuities and the level of annuity income you would receive.

You are then entitled to use your open market option, which allows you to transfer the pension fund value to another annuity provider of your choosing. This enables you to take advantage of a higher annuity income which may be available from a different provider. Annuities are usually provided by insurance companies.

You could receive more annuity income from a pension annuity than you think. The Financial Services Authority (FSA) agree; they say "You may be able to get a better annuity rate by shopping around. You should check what your provider is offering you and then compare this with the annuities on offer through the open market."

However, many retirees still don't use their open market option to buy an annuity. This is not just because they are unaware of the benefits of doing so, but they don't actually realise that they have an option. It's been claimed that those at retirement who don't use their open market option, taking the default annuity offered by their pension provider, may be missing out on up to 40% more annuity income.

According to the professional pensions publication, DC World, it is estimated that over £1 billion in pensions was lost by failure to get proper advice on the best-selling annuity.

To make the most of the Open Market Option it is important that you speak to an Independent Financial Adviser (IFA) who will explain the different annuity (or alternatives to annuities) and retirement options available.

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Enhanced Annuities / Impaired Annuities

If you're in advanced years, a smoker or have/have had impaired health you may be able to increase your annuity income.

The reason why some pension annuities, called "Enhanced Annuities" or "Impaired Annuities", pay more than standard annuities is because those in better health tend to live longer than the average. The annuity providers therefore have to pay out more over the healthier person's retirement lifetime so their yearly income is usually lower. This is why it is extremely important to report any ailment, no matter how small you think it is, to your annuity adviser. It may get you a higher rate of return.

You may also receive a higher annuity rate if you smoke 10 or more manufactured cigarettes or use 85mg of rolling tobacco per day. (Visit Smokers Annuities.)

Even though you may regard yourself to be in relatively good health (some think they have to suffer from a serious medical condition such as cancer, heart disease or stroke to receive extra income in retirement), the reality is often different. A seemingly minor condition or complaint may substantially increase your annuity income.

In fact, if you have one of nearly 1500 health conditions, such as asthma, being overweight, high blood pressure, heart problems etc., you must ensure you mention it to your annuity adviser.

Additionally, higher annuity incomes are often achieved by:

• Those who have retired from certain occupations
• Those who live in certain parts of the country

It is estimated that up to 40% of the UK population could boost their annuity income with an "enhanced annuity", if you think you fit that category, it's essential that you tell your annuity specialist about it. You will stand a better chance of a higher annuity income for the rest of your retirement.

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Annuities for Smokers

If you're a smoker, annuity providers factor in that you're likely to die sooner than the average non-smoker. They therefore assume that they'll not be paying you your annuity income for as long. A presumed shorter lifespan means that being a smoker can increase the amount of income you receive from your annuity.

As a smoker, you may already be entitled to receive a higher pension annuity income, but also, dependent on your age, you may receive further enhanced annuity rates of up to 30% above standard level annuity rates. For instance, if normally you would receive £1,000 per annum as a non-smoker, you might receive as much as £1,300 per year as an older smoker. (Visit Smokers Annuities.)

In the case of enhanced annuities it can actually pay to be older and in poor health!

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Unsecured Pension/Income Drawdown/Phased Retirement

With an Unsecured Pension, you can first take your tax-free cash element (it can't be taken later), and the balance would therefore remain in your selected pension fund. However, there is an exception to this in the case of phased drawdown, where your tax free cash and income requirements can be combined.

Unsecured pensions are definitely not a suitable option for all.

This type of plan is suitable for people who have a relatively large pension fund, usually over £100,000. It has a higher investment risk, as your investment includes equity based funds. This may be more suited to people wishing to defer taking their annuity, have another source of secure income such as a company pension, or wish to benefit from the greater flexibility and death benefits that this option provides.

The income levels available from the fund must be reviewed every 3 years to make sure they remain in line with HM Revenue and Customs limits.

In the event of the death of somebody in full drawdown, the spouse, partner or dependant would have a choice of doing the following with the remaining fund:

• Purchase a pension annuity using all of the remaining funds

• Continue with the unsecured pension/Income Drawdown arrangement using all of the remaining funds

• Taking the whole amount as tax free cash (subject to a 55% tax charge)

A potential advantage of deferring an annuity purchase by utilising Income Drawdown is that an annuity is based on your health at the time of purchase. Therefore if you were to suffer ill health during the drawdown period, you may then qualify for a higher annuity rate (an enhanced annuity) than you would have done when you entered the drawdown arrangement.

The disadvantage with Income Drawdown could be that if at the start you were drawing down the maximum income from the fund, you may have a lower amount left at the end (depending on growth) with which to purchase an annuity. You must also bear in mind that your pension fund may fall as well as rise.

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Phased Drawdown

Phased Income Drawdown allows you to draw an income from part of the fund leaving the rest intact to grow. You can take your tax free cash at intervals instead of all at once. If your remaining fund grows, it will mean that you could have a larger tax-free lump sum than taking it all in one go. This may be suitable for someone who is still working and paying tax or maybe somebody working part-time who does not necessarily need their maximum income.

Phased Income Drawdown allows you to vary the amount of income that you receive from your pension. This gives you some flexibility if circumstances change. This also has an added advantage that part of your pension fund has the potential to carry on growing in a tax favoured environment.

It is essential that you obtain the appropriate level of advice before committing to this type of arrangement.

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With Profits Annuities

With profit annuities are an investment linked alternative to a guaranteed annuity.

With profits annuities are unlike standard annuities where the fund is invested in gilts and the income level is guaranteed. The pension fund is invested in the with profits fund of the chosen pension provider. The future level of income is dependent on the investment performance of the chosen with profit fund. This means a with profit annuity can involve a higher level of risk than a standard annuity, and your income could fall or rise depending on future bonus levels.

There is more flexibility available under a with profit annuity arrangement when compared to a standard annuity. For example, you are able to adjust your future income levels within minimum and maximum parameters should your circumstances change. For instance, a 62 year old male may have a greater need for income from their own pension arrangements for the next 3 years until they start to receive the state pension. They could therefore set the income from a with profit annuity at a high level for that period, before reducing the income once they start to receive the state pension.

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Variable Annuities / Third Way Annuities

Although conventional annuities provide a guaranteed income, they're not flexible. You have to lock into current interest rates. Variable annuities offer a mixture of income and capital growth benefits.

You will receive some income guarantees, but these provide less protection than the guarantees of conventional standard annuities.

Variable annuities can also provide you with investment growth potential. If you choose a conventional annuity you lock into the current gilt yields which under pins your guaranteed income, but with variable annuities it's possible to participate in any possible future growth.

Third way variable annuities aim to supply a level of secured income from an annuity whilst combining some of the flexibility of unsecured pensions (also known as Income Drawdown).

As these types of annuity product vary widely, it is important for you to ask a qualified annuity adviser for further information.

It is also important to ask the annuity provider how strong the guarantee is if the company runs into financial trouble.

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The Argument Against Annuity Rate Tables and Calculators

You may already have visited other annuity sites and used an annuity rates calculator or consulted an annuity rate table.

• Were you sure that the information about the range of annuities was in date?

• Did the annuity table or calculator take into account all of the products on the market or was it just a selection?

• Did you know that specialist independent annuity brokers may have access to a wider range of retirement annuity possibilities?

• Was it an individual annuity quote or just an illustration?

• Did the website promote particular annuity providers over others as they were paid higher commissions by some companies?

• Are the annuity providers able to pay to list their products higher up the tables, or maybe have their products shown in a different way?

• Did you know that the annuity rates may change before your application actually goes through? If you received a quote, was it guaranteed?

Updated by machines or humans?

Did those sites use 'screen-scraping' technology that retrieves and transfers annuity information from other programmes?

According to Wikipedia, "Screen scraping is generally considered an ad-hoc, inelegant technique, often used only as a "last resort" when no other mechanism is available. Aside from the higher programming and processing overhead, output displays intended for human consumption often change structure frequently. Humans can cope with this easily, but computer programs will often crash or produce incorrect results."

But what if the site reassures you it is up to date?

Even if the annuity comparison table or calculator was 100% up to date and correct, were you aware that the stated annuity rates may have no resemblance whatsoever to the pension income that you will actually achieve? This is because your annuity may increase due to circumstances as yet unknown to the site, i.e. your state of health, medication that you may be taking and whether you're a smoker or not. Some annuity providers even base your future income on your previous occupation or where you live.

Again, let us say that you do eventually find a site where everything is up to date and works correctly; do you know at this stage whether you want a level annuity, fixed-rate escalating annuity or an rpi-linked escalating annuity? Also, have you considered your spouse's, partner's or dependant's percentage on your demise? Have you considered an unsecured pension, variable annuity or purchased life annuity? There are a bewildering array of choices.

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What does the FSA say about comparison sites?

Comparison sites have been heavily criticised in the media and by the Financial Services Authority (FSA) for their lack of independence and incomplete information. Consumers often don't realise that they are not getting the whole picture.

The FSA say "Some may only include products that the website can make money from in some way, for example if you click through to the provider." They also state that you should never buy a product just on the basis of what you see on their own tables. They recommend getting advice before using their tables.

(Please note that the information about annuities and annuity alternatives on this page does not represent financial advice. You must consult a broker for complete information. "The argument against annuity rate tables and calculators" is an opinion only and you should not rely on this information to make (or refrain from making) any decisions about buying an annuity.)

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Why use a pension annuity broker?

1. An annuity broker may be able to secure a better annuity deal than you may be able to achieve.

2. They're more likely to have access to a wider range of annuity possibilities than you.

3. Due to their ongoing relationships with annuity providers, they may be better placed than you to overcome any problems that may arise with your application.

4. You will have a point of contact should anything go wrong or need prompt attention.

5. They work to a set of guidelines laid down by the Financial Services Authority (FSA) who regulate annuity brokers' policies and working methods.

6. Annuity brokers have got an interest in recommending the correct product for your circumstances. They'll not wish to fall foul of stringent FSA anuities regulations.

7. If you choose not to get FSA qualified annuity broker advice, you may not be able to get compensation through the Financial Services Compensation Scheme if you have a future complaint about the recommended annuity.

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FSA Annuities Information: Open Market Option


An update on the review November 2008

Open Markets Option: an update on the review

Update on the Review of the open market option

The Open Market Option (OMO) allows those with accumulated pension savings to choose the provider from which they buy their annuity. By using the open market option and shopping around to buy an annuity people may be able to increase the annual income they get from the annuity bought with their pension savings. At Pre-Budget Report 2007 the Government published a review of the operation of the open market option for buying annuities. That review made a number of recommendations aimed at improving the operation of the open market option. Significant progress has been made against these recommendations:

The Pensions Advisory Service (TPAS) launched a structured choice web-tool in May 2008. The web-tool guides people through the choices involved in selecting an annuity and includes a link to the FSA’s annuity comparison tables, allowing people to compare annuity rates from different providers. Initial results have been promising showing that around 95% of those who have used the site, and provided feedback, found it useful and felt that it would help them to make a more informed choice about their annuity. The ABI will be encouraging its members to inform those nearing annuitisation about the website;

The DWP in conjunction with HM Treasury have formed a working group to look at the operation of the open market option for buying annuities. The group comprises representatives from Government departments, regulatory bodies, consumer groups and the pensions industry. The group has made recommendations regarding best practice and has fed into the other areas of progress. This working group will continue to work towards improvements in the operation of the open market option for buying annuities;

The FSA has reviewed reported delays in companies making open market option transfers against its Treating Customers Fairly principle and has found that in 62% of the cases reviewed delays were experienced by consumers. The reasons for, and sources of, these delays varied and correspondingly a number of solutions will be required. In the first instance the FSA has committed to working with the industry, through the ABI, to reform the overall process – in particular, to achieve standardisation and rationalisation of the systems and documentation involved in fund transfer;

The FSA has also reviewed the information that pension companies send to their customers as they approach retirement. This research has shown that the material provided by almost 40% of the firms examined did not meet the FSA’s minimum rules and principles under the requirement of Treating Customers Fairly. All of the firms involved have received individual feedback from the FSA and now have until December 2008 to ensure that their documentation meets the Treating Customers Fairly rules and principles. After the deadline the FSA will be examining firms’ progress and will instigate any further actions required;

The Association Of British Insurers (ABI) has produced a new Good Practice Guide “Improving Customers’ Retirement Experiences” and is working with member companies to promote best practice. The Guide includes new template content for pension companies’ pre-retirement “wake-up” letters, which emphasises the potential benefit of shopping around. The guidance also requires firms to promote details of TPAS’s online annuity choice tool;

Open Markets Option for buying annuities: an update on the review

The ABI is also working with pensions companies to simplify and speed up open market option transfers. A new service designed to improve open market option transfer processes is being built to address the delays identified in the FSA review. FSA will be liaising with the ABI on this initiative; and

HM Revenue and Customs has clarified that tax legislation allows pension schemes to offer an annuity under an open market option without having to provide a pension themselves.

HM Treasury has been monitoring progress in the operation of the open market option and will be using key success criteria – a “basket of indicators” to continue to measure progress. The two key success outcomes are that:

people coming up to retirement understand the importance of choosing the right annuity and shopping around for the best rate; and the process of shopping around and switching providers is as quick and simple as possible.

The FSA review of the operation of open market option found that 40% of those taking an annuity from a personal pension do so on the open market. Of those who don't take the open market option ABI research suggests that half of them are aware of the open market option for buying annuities but choose not to exercise their right and the other half remain unaware of the option. This suggests that firms must renew their efforts to ensure that those who are approaching annuitisation are aware of the Open Market Option and sources of information to help them make an informed decision.

The Government believes that the changes instigated so far will help deliver real improvements in outcomes for people approaching what could be one of the most important financial decisions in their life – how to take their pension income. However there are still improvements to be made in the area of taking an income from pension savings.

To date much of the focus has been on ensuring that consumers are aware of their right to shop around to select the provider of their annuity. This is an important factor in selecting an annuity and can ultimately lead to the consumer receiving a significantly higher income than they may have otherwise had.

However, once purchased an annuity is payable for at least the remainder of the individual’s life. This could be a significant period of time and the annuity could represent the majority of that person’s income during that period as well as any ongoing income for surviving spouses and/or dependents after the member’s death. Few other products can have such a profound impact on an individual’s lifestyle and it is therefore highly desirable that chooses the right type of annuity for their needs as well as getting the best available rate.

Among the most important aspects of annuity choice are choosing whether to provide income for a spouse or partner in the event of the holder’s death or whether to have an annuity which provides for increased income payments over time.

Following on from the launch of the TPAS annuity website the Government intends to work with the open market option Working Group to look in more detail at the nature of choices made in annuity selection and additional methods of ensuring that people are able to make an informed choice when selecting not only their annuity company but also the type of annuity they take. © Crown copyright

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Please note that the annuities and income drawdown information contained within the articles and general text on Annuities Central may not be intended for annuity consumer use, may no longer be current and should not be used by consumers to make financial decisions. It is very important that you don't use this annuity information in isolation to decide which annuity or annuity alternative to buy. Annuity comparisons and pensions information or opinions expressed are made as at the date of this publication and are subject to change without notice. Always seek the help of an annuity broker before you buy an annuity.

Annuity News / Income Drawdown News

Annuities and Drawdown 2011

23 December 2011. For pension investors, the year should have been defined by a series of landmark policy reforms, ushering in a much higher level of freedom and flexibility in planning your retirement. But, instead, the year closed with many retirees facing significant cuts to their income – or being offered record low annuity rates for their lifetime savings. Back in April, the government implemented its promise to scrap the pension rule that, for more than three decades, had forced 1000s of pension investors to move their funds out of the stock market and buy an annuity once they reached 75. This reform was coupled with the introduction of flexible drawdown...Annuities and Drawdown News

Just Retirement Wins Top Award At Service Awards

18 November 2011. Company of the year at the Financial Times Adviser Service Awards went to Just Retirement, while a score of other names won in the e-commerce, mortgages, investments, life and pensions categories. LV=, Scottish Life and Transact were also among winners. Aviva won the most improved Investment Providers and Platforms award...Just Retirement News

Hornbuckle Mitchell Opens Doors To Flexible Drawdown

27 October 2011. Hornbuckle Mitchell, the Income Drawdown and Sipp provider, has begun accepting applications from clients wishing to take their pension income via flexible drawdown. Flexible drawdown allows pension scheme members who have over £20,000 a year secure income - from state pension, annuities and final salary schemes - to take funds directly from Sipps and other personal pensions without them being subject to a cap...Hornbuckle Mitchell News

Caution Urged Over Fixed-Term Annuities

27 October 2011. As income levels plunge to record lows, investors looking to put off buying a traditional annuity on retirement are being advised to take a cautious view of fixed-term plans that are sold as a way of keeping their pension options open. According to the MGM Advantage Annuity Index, the average rates from conventional and enhanced annuities fell by 4.15% and 2.3% respectively, in the 3 months to the end of September...Fixed term Annuity News

Pensioners Who Seek Advice Receive Higher Annuities

19 October 2011. Pensioners who seek the advice of an independent financial adviser are more likely to secure an annuity income 24 per cent higher than those who don't. The finding comes alongside worrying revelations that more pensioners are conducting 'DIY retirement planning', a joint study from Prudential and The Association of IFAs showed...Annuity Advice News

Partnership Assurance May Be Sold With Price Tag Around £750m

19 September 2011. Retirement specialist Partnership Assurance will be the subject of a bidding war with a price tag in the region of £750 million. Its private equity firm parent Cinven is set to start the process to sell Partnership Assurance after receiving a number of takeover approaches....Partnership Assurance News

Which Survey Highlights Retirement Shortfall

27 August 2011. Research by Which has shown that a single person hoping to receive a post-tax retirement income of £1,500 per month will need to have saved up a pension pot of £230,000 by the time they reach age 65. If they buy an index-linked annuity, to protect their pension income against inflation, the figure rises to £370,000...Pension Shortfall News

Annuities 'Last For a Lifetime'

26 August 2011. An expert's claimed that an annuity makes a good investment because it lasts a lifetime. According to Fiona Tait, in the FT, retirees should not be deterred from making the alternative investment because of falling rates and dwindling pension funds. "There's no doubt this will cause short term problems for some individuals but is there some good that could come of it?" she asked. "Annuities are for life. The key upside of a conventional annuity is that it doesn't run out." ...Annuity Rates News

Falling annuities bode ill for pensioners: MGM Advantage

12 July 2011. MGM Advantage has warned that pensioners are facing a diminishing pot of money to support ever-increasing longevity after annuity rates fell over the past 3 months. MGM Annuities said income paid on enhanced and conventional annuities between March and June fell by 0.18 per cent and 3.5 per cent respectively....Annuity Rates News

UK to apply EU insurance gender rule from end 2012

30 June 2011. THe UK will enforce a European Union ban on sex discrimination in insurance pricing from the end of next year, a government minister said on Thursday, dispelling insurers' concerns that the measure could apply to existing policies. Legal experts say the ruling is significant for many insurers in Europe because they use gender as a risk factor to price policies including annuities...Annuities Gender Rule News

Nest appoints 5-strong annuities panel

22 June 2011. National Employment Savings Trust (Nest) has revealed details of 5 annuities providers that have been appointed to its retirement panel, with each getting a contract that runs for ten years. Nest's panellists are: Canada Life and Legal & General (L&G) for both conventional and enhanced annuities; Just Retirement and Partnership for enhanced annuities; and Reliance Mutual for enhanced annuities specifically for those who smoke...Nest Annuities News

Hargreaves Lansdown and Wealth 150 attacked for 'secret commissions'

13 June 2011. Hargreaves Lansdown has been criticised for not fully disclosing its financial arrangements with fund managers. The Daily Mail said Hargreaves Lansdown is wrong to keep fees so secret. He said Hargreaves Lansdown is at a crossroads...Hargreaves Lansdown News

Enhanced Annuities: Annuity clients may be missing out on billions

10 June 2011. Research suggests that customers are missing out on billions of pounds by not applying for an enhanced annuity and financial advisers could be part of the problem. Independent research by Oxford Economics, on behalf of the Pension Income...Enhanced Annuities News

The Pru issues warning over fixed-term annuities

9 June 2011. Provider warns that products are "bizarrely" governed by income drawdown rules and urges advisers to check explanation of risk in suitability letters. The Pru has issued a warning to advisers over fixed-term annuities, saying that clients may not understand the risk profile of the product. The comments follow the launch of new fixed-term annuities by providers such as Just Retirement, Living Time and LV=...Fixed Term Annuities News

Higher annuity rates may not last long

2 June 2011. The Pru reports that those who are currently enjoying higher annuity rates might find that this trend is only short-term. It's possible that the UK is unlikely to see the long-term continuation of these high rates...Pru Annuity Rates News

Just Retirement appoints medical director

23 May 2011. Annuity provider highlights need for effective underwriting as it confirms appointment of Dr Tim Crayford, who has served as a government medical adviser. Just Retirement has appointed Dr Tim Crayford, formerly chief medical adviser to the department of transport and medical director for Norfolk Community Trust, to the newly created position of medical director...Just Retirement News

Consumers 'need more education' over annuities

11 May 2011. When it comes to annuity products, UK consumers need to be provided with an even greater level of education by firms operating in the country's financial services sector, it has been suggested. The Open Market Option is one area where further information could be provided to people, according to MGM Advantage...Call for Annuities Education

Annuity Company Hargreaves Lansdown pair make top 100 Rich List

20 April 2011. Peter Hargreaves and Stephen Lansdown are now amongst the UK's 100 wealthiest people, according to the Sunday Times Rich List 2011...Hargreaves Lansdown News

HMRC u-turns on income drawdown rules

20 April 2011. The taxman has back-tracked on income drawdown rules that could have left some investors trapped in poor personal pensions, in response to pressure from pension providers. The draft of the Finance Bill published on 31 March, said all savers switching their pension funds to new pension providers after 6 April would become subject to new, stricter withdrawal limits when later going into capped drawdown...Flexible Drawdown Rules

Savers advised to delay flexible drawdown decision

19 April 2011. HMRC's clarification on the rules for flexible drawdown mean that savers could benefit from not entering flexible drawdown until a year after they secure their income. HM Revenue and Customs (HMRC) has clarified rules around flexible drawdown, stating that the £20,000 minimum income requirement (MIR) needs to be evidenced for the tax-year in which drawdown is taken and not just guaranteed...Flexible Drawdown Rules

Income drawdown rules trapping pensioners with poor pots

13 April 2011. Pension experts warn investors could be stuck in poorly performing plans, as transfering out could lead to a loss of income following changes to drawdown rules. New income drawdown arrangements, which became available on 6 April, allow investors to withdraw 100% of their GAD or equivalent annuity rate...Income Drawdown Rules

Hornbuckle to delay offer of flexible drawdown

31 March 2011. Hornbuckle Mitchell won't be offering flexible drawdown on the 6 April 2011 when the new rules come into force, head of sales has confirmed...Flexible Drawdown

Just Retirement: OMO is past its sell-by date

17 March 2011. Scrapping the open market option (OMO) and replacing it with a 'pension passport' will help consumers to shop around for annuities. The Pensions Income Choice Association has reinvented shopping around with a three step process that will encourage people approaching retirement to choose between annuity providers, claims Just Retirement...Just Retirement Annuities

Dangerous rush to meet Income Drawdown deadlines

14 March 2011. Scottish Life has warned of the danger of providers rushing to meet the start date to introduce flexible Income Drawdown. Scottish Life, told FT Adviser providers had no hope of meeting the start date of 6 April 2011 saying "We still have not had the results of the consultation on flexible Income Drawdown and it is due to start on the 6 April...Income Drawdown

Income Drawdown Changes Will Benefit Older Pensioners

8 March 2011. Changes to Income Drawdown rules coming into force in April are likely to increase the number of people deciding to use drawdown in their later years. Within the new legislation coming into force from April there were 3 changes that would particularly affect older pensioners use of drawdown. Firstly, the company pointed out that under new ‘capped’ Income Drawdown...Income Drawdown

Industry anger at EU annuities rates ruling

1 March 2011. Industry experts said the increased cost of compliance is expected to lead to insurance underwriters and pension providers cutting annuity payouts. The head of pensions research at Hargreaves Lansdown, said...Annuity Rates

Annuities: Changing times call for different measures

23 February 2011. The results of the latest Retirement Planner Enquiry, into how recent reform will affect the annuity market, are in. The rate of retirement income...Annuities Market

Just Retirement to launch flexible annuity

23 February 2011. Just Retirement has revealed it is working on a flexible fixed-term annuity product to bring out in the summer...Just Retirement Annuities

New drawdown rates could 'shock' pensioners

28 January 2011. HMRC is creating new figures to calculate Income Drawdown limits which could reduce pensioner incomes, experts warn. The new capped Income Drawdown amounts for individuals will be 100% of their equivalent annuity, rather than 120% as before...Living Time Annuities

Variable annuities endangered?

27 January 2011. What does the future holds for the variable annuity market and how that will affect the third way sector as a whole? The third way annuity market has expanded rapidly over the past 4 years with providers developing variable annuities, as well as fixed-term and asset backed annuities...Variable Annuities

MetLife to distribute Living Time products

14 January 2011. MetLife will distribute the Living Time fixed-term annuity products as part of MetLife's expansion strategy. MetLife claimed the deal underlines its continued commitment to product innovation in the UK market and enables it to establish a presence in the rapidly growing fixed-term annuity category which Living Time...Living Time Annuities

‘Misleading’ Aviva annuity ad banned

21 December 2010. A TV advert for Aviva Annuities, in which the insurer claims it can provide 20% more income for annuity customers, has been banned by the Advertising Standards Authority. The ad features a voiceover saying: "when you retire get up to 20% more income with Aviva". Aviva claims its annuity rates...Aviva Annuities Ad Banned

End of Compulsory Annuities

14 December 2010. You could almost hear the pensions industry raising a collective cheer as the government announced plans to scrap the compulsory annuity purchase requirement. The abolition of the age-75 rule follows years of furious pension industry lobbying...End of Annuities

Pensioners need £20,000 to access flexible drawdown; IFAs to incur training costs

9 December 2010. Access to new flexible Income Drawdown pensions will be restricted to people with a lifetime pension income of a minimum of £20,000 a year, the Treasury says. The rule change is included in a package of draft clauses published today by the Treasury for inclusion in the Finance Bill 2011. Capped Income Drawdown amounts...Income Drawdown

End of compulsory annuitisation in sight

8 December 2010. The government will soon announce its consultation on scrapping compulsory annuitisation at age 75. The plan aims to change current annuity rules that stipulate individuals have to take an income from their pension fund from the age of 75. This can be through buying an annuity or by taking an income directly from their pension fund, known as an alternatively-secured pension. Philip Brown, head of retirement for Partnership...Compulsory Annuities

Annuity rates increase but not the start of a trend

29 November 2010. Rising bond yields appear to be feeding through into the annuity market with six insurance companies increasing their rates over the last week. Laith Khalaf, pensions analyst at Hargreaves Lansdown, does not think this is the start of a sustained trend. He claimed the Hargreaves Lansdown annuity...Hargreaves Lansdown Annuities

Just Retirement Annuity Sales up 14 per cent

11 November 2010. Just Retirement's new annuity business sales are up 14.9 per cent to £245.5m according to its interim results. The retirement specialist's annuity policies...Just Retirement Annuities

Hoban defeats extra Equitable Life payments

11 November 2010. Thousands of Equitable Life victims who bought annuities before 1992 will receive no compensation despite a proposed amendment to include them in the government’s repayments package...Equitable Life Annuities

Government can't calculate Equitable Life compensation for extra 10,000 annuity holders

10 November 2010. The level of due to 10,000 Equitable Life customers who bought with-profits annuities before 1992 would be "impossible to calculate", Tory MP Jonathon Edwards says. During a debate on the Equitable Life...Equitable Life Annuities

Retirees missing out because of illogical behaviour

20 October 2010. Thousands of people could be missing out on a better retirement income because of an illogical approach to shopping around for the best annuity deals according to Aviva Annuities. The retirement specialist said while people are used to comparing prices for routine items like food and holidays, the same logic is not always applied to buying annuities...Aviva Annuities

Just Retirement sales hit £1bn record

19 October 2010. Just Retirement has generated sales of over £1bn for the first time in its history, a year-on-year improvement of 33 per cent. Just Retirement's embedded value has grown by 107 per cent over the last year. Just Retirement said...Just Retirement Annuities

Lansdown cashes in £58m in sale of Hargreaves Lansdown shares

14 October 2010. Stephen Lansdown, co-founder of Bristol-based Hargreaves Lansdown, has taken a further step back from the advisory business after selling more than 13m in ordinary shares. Mr Lansdown’s shares were...Hargreaves Lansdown Annuities

Just Retirement acquisition will build on Open Market Option plans

5 October 2010. Just Retirement is acquiring The Open Market Annuity Service (Tomas) from Kerr Henderson. The acquisition is part of the specialist life assurance group's strategic goal to invest in further development of the open market option. Just Retirement said...Just Retirement Annuities

Advisers turn to asset-backed annuities as rates plunge

16 September 2010. Advisers are set to turn their backs on conventional annuities and recommend asset-backed alternatives as annuity rate crashes continue to plague retirees. A study conducted by MGM Advantage suggests more than 90% of IFAs expect the market for...MGM Annuities

Axa to enter variable annuity market

14 September 2010. Axa Annuities is ready to enter the variable annuity market in the UK before the end of the year. The managing director of Axa Global Distributors, said it would complement the newly created Axa Wealth business...Axa Annuities

How will annuity reform affect QROPS?

9 September 2010. Proposed annuity reform will have a big impact on how people take their retirement income. Now that the Government has laid out its proposals for annuity reform...Annuity Reform

September annuity rates on ‘even keel’

6 September 2010. Annuity rates have mostly remained constant over the past month with Aviva Annuities still in the top spot, according to the latest figures from Alexander Forbes Annuity Bureau. Basing research on a 60-year-old male with a £100,000 purchase, the figures say Aviva offers...Alexander Forbes Annuity Bureau Annuities

Preserving the golden age of annuities

2 September 2010. The chief executive of Partnership, discusses the opportunities and problems surrounding the scrapping of the annuity age. We congratulate the Government on its consultation, Scrapping Annuities Age 75, which provides a range of retirement funding options...Partnership Annuities

Why advisers should consider third-way annuity products

27 August 2010. An alternative to conventional annuities and unsecured pensions has emerged as a popular retirement choice, writes Mike Morrison, head of pensions development at AXA Wealth ...AXA Annuities

Stephen Lansdown resigns as Hargreaves Lansdown exec director

27 August 2010. Stephen Lansdown has taken a step back from the management of Hargreaves Lansdown by resigning as executive director to pursue other interests...Hargreaves Lansdown Annuities

Hargreaves Lansdown urges abolition of contracting out

Hargreaves Lansdown said government plans to abolish contracting out into final salary schemes would simplify the pension system and create greater equality between defined benefit and defined contributions...Hargreaves Lansdown Annuities

Origen and PosSol post £2m Q2 losses

Aegon UK's distribution businesses Origen and Positive Solutions posted combined losses of £2m in the 2nd quarter of 2010...Aegon Annuities

Annuity transfer delays can cost £127 a week

Delays in the tansfer of pension savings into retirement income could cost pensioners up to £127 a week...Annuities Transfer

Annuities - Change is afoot

Examining changing times for the annuity market. The 2 main factors affecting the pricing of conventional annuities...Annuities

A quarter of retirees find that their health dramatically worsens during the 1st five years of retirement, according to LV=

The majority of people currently fix themselves into an annuity product for life at their point of retirement...LV Annuities

Scottish Widows says Money worries tops over 50’s list of concerns

Some 56 per cent of over 50’s are worried about financial stresses when they retire, data from Scottish Widows...Scottish Widows Annuities

Just Retirement hits £1bn mark

Just Retirement said sales of its Equity Release and annuity products topped £1bn during...Just Retirement Annuities

Scrapping annuity rule is move in right direction

Proposals to remove the requirement to annuitise at age 75 are a welcome move which will provide savers with more flexibility to plan their retirement...Annuities

Compulsory annuitisation rules ripped up; ASP axed

The UK Government today proposed bringing to an end rules forcing pension investors to buy an annuity at a specific age saying there should no longer be a deadline by which people "effectively have to annuitise". It says retirees will be able to choose how much to draw down annually...Annuities and Income Drawdown

Annuities: Age 75 - more flexibility for all?

The consultation to end compulsory annuities should lead to increased flexibility for retirees...Compulsory Annuities

Capped drawdown given as annuity alternative

The Treasury is proposing to scrap the age-75 requirement to buy an annuity and give investors the option of drawdown instead. The government said it wanted to simplify the rules on pensions savings by giving retirees the choice of drawdown or buying an annuity...Annuities and Income Drawdown

Reform should not undermine UK annuity sector

Reforming the Age 75 rule will re-invigorate the retirement income market but care should be taken not to undermine the annuity sector...Annuities Age 75 Rule

UK Government set to further relax forced annuities

The Government is expected to throw its weight behind the scrapping of compulsory annuities when it launches a consulation on pensions funding tomorrow. Head of pension research at Hargreaves Lansdown...Hargreaves Lansdown

Retirees want more annuity advice

More pre-retirees are shopping around for an annuity, but some insurers are not providing clear enough information to their clients about their pension options, new research has found. A survey of 750 retirees found 67 per cent of respondents who bought an annuity earlier this year used the Open Market Option (OMO) to look for a more competitive rate...Annuity Rates

Axa Wealth poised for variable annuity pilot

Axa Wealth is set to pilot a variable annuity with a select group of IFAs, with a view to rolling it out industrywide in October...Variable Annuities

Saga only top five provider not to cut annuity rates

Saga was the only top five provider not to cut annuity rates following the emergency Budget according to Alexander Forbes Annuity Bureau...Annuity Rates

Hornbuckle warns on pre-55 income drawdown

Advisers with Income Drawdown clients are being warned of potential problems for clients who want to transfer an uncrystallised fund to one which was nearly all or partly protected rights...Income Drawdown

Resolution eyes £2.75bn AXA annuities, protection and pensions deal

Resolution Group, the consolidation vehicle which bought Friends Provident last year, is in talks to buy Axa Annuities...Friends Provident and Axa Annuities

Government scraps age 75 rule on annuities

The Government will scrap the rule which creates an effective obligation to purchase an annuity by age 75...Annuity Rules

Hargreaves Lansdown: Thatcher better than Cameron

Peter Hargreaves, the founder and CEO of Hargreaves Lansdown, says former Prime Minister Margaret Thatcher was a "million times" better for businesses than David Cameron...Hargreaves Lansdown

Aegon Annuities pulls out of bulk annuities market

Aegon Annuities said the move was part of a drive to cut a quarter of its life and pensions costs in the UK...Aegon Annuities Provider

Advised annuity sales to fall further

Nearly three quarters of UK annuity providers believe advised sales of their product will continue to fall, while execution-only business continues to rise. A total of 24 annuity providers...Annuity Providers

Partnership Annuities to enter Equity Release market

Annuities provider Partnership is set to become the latest entrant to the Equity Release market after it revealed that it could be planning to launch a product...Partnership Annuities

Rockingham adds MetLife

Retirement income broker Rockingham Retirement has made the MetLife Guaranteed Investment bond the third investment product available through its Retirement Income Triple Investment Account (Rita) drawdown platform. The MetLife...Rockingham / MetLife Annuities

Annuity rates stabilise ahead of Budget

Annuity rates held firm in June ahead of the Emergency Budget, following several months of falling prices. The best level annuity rate from Saga of £6,180 was unchanged from May, the Alexander Forbes Annuity Bureau says. The majority of providers held their rates for the month with only Aviva Annuities and Aegon...Annuity Rates

Hargreaves Lansdown boss departs UK for Guernsey

Stephen Lansdown, the Hargreaves Lansdown co-founder and one of the UK's richest individuals, has left Britain for Guernsey. It was acutally Hargreaves Lansdown co-founder Peter Hargreaves who first threatened to exit the UK, before doing a u-turn on his plan to flee. Lansdown, the...Hargreaves Lansdown

Coalition to phase out annuity compulsion

Plans include a review of the retirement age and an end of the requirement to buy an annuity by age 75...Compulsory Annuities

Top Prudential exec slams Govt annuity policy

Government opposition to forced annuitisation ignores the fact people want to buy annuity products, argues Prudential...Prudential Annuities

Just Retirement annuity sales up 87% in Q1

New annuity business at Just Retirement rose to £238.6m in the first three months of 2010...Just Retirement Term Annuities

HMRC ruling traps income drawdown clients

HM Revenue & Customs has confirmed clients aged between 50 and 54 with crystallised benefits are unable to transfer to a new scheme or annuitise without facing unauthorised payment charges...HMRC Income Drawdown

Life after income drawdown

The last decade has seen Income Drawdown become the darling of the retirement income market for mass affluent to high net worth customers. Why? Because it offers everything that traditional annuities...MGM Advantage Income Drawdown

MGM Advantage says election result will increase annuity rates

MGM Advantage has predicted the hung parliament could result in higher annuity rates. "If annuity rates do rise, this will come as welcome relief to the annuity sector because rates in general have been falling"...MGM Annuities

Annuity sales drive Friends Provident's 19% sales growth

Annuities have help drive Friends Provident's sales in the first quarter of 2010...Friends Provident Annuities

Variable Annuities, the Next Big Thing

Annuity Products: Discussing the future prospects for variable annuities in the UK ...Fixed Term Annuities

The rise of the annuity

Annuity Products: Discussion on the different annuity products available on the market ...Annuity Products

Annuity rates fall after winter stability

Annuity rates tumbled in April after a brief period of stability during the winter...Annuity Rates

Unlocking annuity choice

Helen Morrissey assesses the prospects for the fixed term annuity market. The fixed term annuity has, up until now, played a relatively small part in the at-retirement marketplace...Fixed Term Annuities

Liverpool Victoria Launches Third Way Annuity

Liverpool Victoria has launched Protected Retirement Plan, a variable annuity pension product with a minimum term of three years, which head of annuities...Liverpool Victoria Third Way Annuities

Enhanced annuities sales rise 24% to £1.79bn

Sales of enhanced annuities in the UK increased by 24% last year, latest Towers Watson research reveals...Enhanced Annuities

Income Drawdown, Making the grade?

As Income Drawdown approaches its 15th anniversary John Moret assesses whether it has met peoples’ needs right. It’s nearly fifteen years since the introduction of Income Drawdown in July 1995. Few financial products have caused more debate – with support for Income Drawdown fluctuating as investment markets oscillate and interest rates rise or fall...Income Drawdown

Just Retirement chief to step down

Just Retirement founder Mike Fuller will step down as chief executive in the summer. He will be succeeded by LV managing director of life and pensions, Rodney Cook, when he retires on 2 July 2010. Fuller, who founded the Equity Release and annuity specialist...Just Retirement

MGM Advantage reveals details of flexible annuity

MGM Advantage has revealed further details of its asset backed Flexible Income Annuity. The minimum investment required in the new annuity product is £10,000...Flexible Annuities

Hargreaves Lansdown fears Treasury to target basic pension allowance

The basic pension contribution allowance could be the next target in the Government’s plans to cut pension relief, according to Hargreaves Lansdown...Hargreaves Lansdown

MGM Annuities set to launch latest annuity product

MGM Advantage, the enhanced annuity provider completed its fine-tuning of a flexible asset-backed product in January and is now ready to launch the product...Enhanced Annuities

Aviva pensions adds medical questions to annuity quotes

People looking to take out an annuity plan with Aviva Annuities will now have to answer questions about their health. Merging together the standard plan and the enhanced annuity scheme...Enhanced Annuities

Aviva's shows that more than one in 5 people aged 55 and over live on less than £750 a month

The average income a woman derives from her annuity is £99 a month compared with £151 for the average man. On average, women take out annuities...Pension Annuities

Hargreaves Lansdown profits rise 16% as inflows jump 56%

Hargreaves Lansdown has posted a 16% jump in adjusted pre-tax profits for the six months to end 2009, to £43.1m...Hargreaves Lansdown

Hargreaves Lansdown fears Treasury to target basic pension allowance

The basic pension contribution allowance could be the next target in the Government’s plans to cut pension relief, according to Tom McPhail of Hargreaves Lansdown...Hargreaves Lansdown

Just Retirement sales up 26% on strong annuity business

Just Retirement annuity sales have climbed by more than 25% year-on-year, IFA Online reported today. The Equity Release and annuity specialist...Just Retirement Annuities

Prudential Annuities: Shopping around 'can improve annuity income'

Shopping around for annuities using the Open Market Option could prove a very useful option for those seeking such products in the near future, according to one firm. A feature which appears on the Hargreaves Lansdown...Open Market Option

LV Annuities poised to launch fixed term annuity

LV are poised to launch their much anticipated fixed term annuity product as early as on Monday. IFAs and providers told FTAdviser they expect the arrival of LV's annuity product...Fixed Annuity

Early cut-off dates a threat to annuity applications

Pension providers are warning IFAs of early cut-off dates for new income drawdown and annuity applications in the run up to the April deadline...Income Drawdown and Annuity Application

Hartford Life admits to annuities tax coding errors

An IFA firm has issued a formal complaint to US life insurance giant The Hartford over the incorrect tax treatment of clients who have annuities with its UK subsidiary Hartford Life...Annuities Tax

Prudential Annuities: Older workers 'should not simply opt for default annuities'

It is important that UK consumers look beyond the default annuity products that people's pension providers may offer to them, Sun Life Financial has highlighted...Sun Life Annuities

Prudential Annuities: Consumers 'should research available annuity products'

UK workers who are nearing their retirement should ensure that they take the time to research the annuities that are potentially available to them, according to Rockingham Retirement...Rockingham Retirement Annuities

Just Retirement has reported record annuity sales

The majority of sales were in enhanced annuity policy sales which reached £349.3m...Enhanced Annuities

AJ Bell welcomes annuity progress with Conservatives

AJ Bell have welcomed an announcement by the Conservative party that will scrap compulsory annuitisation at age 75 if elected to Government later this year...Compulsory Annuities / ASPs

How to avoid the annuities postcode trap

This can be done buy buying with-profits annuities and flexible annuities, sometimes called variable annuities. The rationale for these annuity products is that...Postcode Annuities

Flexible drawdown a hit with pensioners

Pensioners are choosing income drawdown over annuities because of the flexibility it provides, according to a survey by Skandia. The poll of 600 financial advisers found that people are wary of annuities because they want to retain control over their income...Income Drawdown Over Annuities

Annuity rates fell in 2009 and now offer poor returns, latest research shows

Annuity rates fell by an average of over 1.5% in the latter half of 2009 with standard annuities seeing the fastest rate of decline, according to the latest figures to be published. Average annuity rates fell 1.64% in the six months to 31 December 2009, with enhanced rates down 1.33%, while standard rates dropped 2.16%, the Annuity Index from MGM Advantage Shows. The index, which tracks the income paid on standard and enhanced annuities...Annuity Rates

Savers, borrowers and pensioners are all vulnerable if figures rise as expected

If an annuity has already been selected and it is fixed, there may be little that can be done to protect against inflation. Anyone approaching retirement has a few more options such as an index-linked annuity which escalates either at a fixed rate or in line with price inflation. The drawback is that they are more expensive than level annuities and will mean starting at a lower level of income but, while the spending power of the level annuity will fall, that of the inflation-linked annuity should remain the same. Another alternative is an unsecured pension...Fixed Annuities

Annuity rates rebound from record lows

“Last year, annuity rates tracked the gilt yields down,” said Tim Whiting, director with Alexander Forbes Annuity Bureau. “There was a slight upturn in gilt yields recently and this is feeding through into higher annuity rates from the leading providers.”...Annuity Rates

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