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. 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...
Pension Annuities Plus
Your annuity income may increase if you have had certain health problems such as high blood pressure, high cholesterol or asthma? 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
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 Link
As the website name suggests, Annuity Link links you to a huge amount of information about annuities and annuity rates. It's all contained within this one website.Visit Annuity Link FSA Number 137914
Annuity Base
Free UK Annuity Database Enquiries. 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 228999
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 460094
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
Simple Annuities
Finding an annuity doesn't 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 Answers
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 460094
The Female Annuity
1000's of women retire every week in the UK, but did you know that when they buy an annuity, in general, they can expect to receive a lower annuity income from their pension savings than men? Compare annuities for women and their alternatives.Visit The Female Annuity FSA Number 460094
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 Pathway
Your simple pension annuity journey. How you might take the wrong annuity route and loose the annuity income that's rightfully yours.Visit Annuity Pathway FSA Number 460094
Just One Bite Annuities
How a pension annuity will affect your life. You'll 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
Pension Annuity Planner
This company will increase your standard pension annuity through enhanced annuities.Visit Pension Annuity Planner FSA Number 460094
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
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.
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.
You are normally entitled to take up to 25 per cent of your pension fund as tax free cash. The rest of the fund must be used to purchase an annuity or annuity alternative, before you reach the age of 75. Your annuity will be treated as pension income under "pay as you earn" tax rules. The conversion of pension income into an annuity is compulsory by the age of 75.
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 not 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 do not 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 do not 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'll 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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Annuities for Females
Thousands of women retire every week in the UK, but, in general, they receive a lower annuity income from their pension fund than men. They are being penalised when they buy their annuity simply due to their biological difference to men.Income from annuities for females are lower because of a presumed longer life expectancy. An individual annuity income is dependent on the insurer's estimation of how long they will live - the same pot of pension annuity money has to last longer - it is therefore spread more thinly over more years.
This fact alone makes it even more important that women choose the right pension annuity (or annuity alternative) and not just accept the one that they are offered by their existing pension fund holder. (Visit The Female Annuity.)
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Unsecured Pension/Income Drawdown/Phased Retirement
If you are aged between 55 and 74, you can choose an unsecured pension as an alternative to an immediate annuity purchase. Unsecured Pensions are sometimes also known as Income Drawdown or 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.
You can now draw down a chosen amount of between 0% and 120% of the calculated single person's annuity value for the remaining fund. The remainder can be converted into an annuity when you choose to end the arrangement. 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 5 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 35% 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 or alternatively secured pension. 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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Alternatively Secured Pensions
If you've not bought an annuity by your 75th birthday, another option is an alternatively secured pension. They are available to people who have reached 75 but don't want to buy an annuity with their pension fund.The funds in an alternatively secured pension are invested in much the same way as an unsecured pension (Income Drawdown) and carry the same risk. You are able to draw a regular income from your pension fund, although maximum income permitted is lower than that available from an unsecured pension. Death benefits are available should you die whilst using an alternatively secured pension, but the tax on this can be extremely high.
Although an alternatively secured pension works in a similar way to an unsecured pension, it has different limits and rules which your adviser will explain. Remember that investments can go down as well as up and are not guaranteed.
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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 do not 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'll 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 do not 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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Annuity News
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 Annuity NewsWhy 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 Annuity NewsStephen 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 Annuity NewsHargreaves 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 Annuity NewsOrigen 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 NewsAnnuity 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 NewsAnnuities - Change is afoot
Examining changing times for the annuity market. The 2 main factors affecting the pricing of conventional annuities...Annuities NewsA 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 NewsScottish 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 NewsJust Retirement hits £1bn mark
Just Retirement said sales of its equity release and annuity products topped £1bn during...Just Retirement Annuities NewsScrapping 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 NewsCompulsory 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 NewsAnnuities: Age 75 - more flexibility for all?
The consultation to end compulsory annuities should lead to increased flexibility for retirees...Compulsory Annuities NewsCapped 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 NewsReform 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 NewsUK 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 NewsRetirees 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 NewsAxa 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 NewsSaga 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 NewsHornbuckle 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 NewsResolution 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 UK's annuity, protection and group pensions business for £2.75bn...Friends Provident and Axa Annuities NewsGovernment 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 NewsHargreaves 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 NewsAegon 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 NewsAdvised 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 NewsPartnership 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 Provider NewsRockingham 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 Annuity Provider NewsAnnuity 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 and Aegon...Annuity Rates NewsHargreaves 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 NewsCoalition 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 NewsTop Prudential exec slams Govt annuity policy
Government opposition to forced annuitisation ignores the fact people want to buy annuity products, argues Prudential...Prudential Annuities NewsJust 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 NewsHMRC 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 NewsLife 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 NewsMGM 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 NewsAnnuity 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 NewsRetirement Planner: Variable Annuities, the Next Big Thing
Annuity Products: Discussing the future prospects for variable annuities in the UK ...Fixed Term Annuities NewsRetirement Planner: The rise of the annuity
Annuity Products: Discussion on the different annuity products available on the market ...Annuity Products NewsIFA Online: Annuity rates fall after winter stability
Annuity rates tumbled in April after a brief period of stability during the winter...Annuity Rates NewsRetirement Planner: 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 NewsLiverpool 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 NewsIFA Online: 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 NewsIFA Online: 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 NewsIFA Online: 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 NewsFT Adviser: 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 AnnuitiesIFA Online: 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 NewsFT Adviser: MGM Advantage set to launch latest annuity product
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 AnnuitiesMoney News: Aviva pensions adds medical questions to annuity quotes
People looking to take out an annuity plan with Aviva will now have to answer questions about their health. Merging together the standard plan and the enhanced annuity scheme...Enhanced AnnuitiesGuardian: 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 AnnuitiesIFA Online: 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 NewsIFA Online: 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 NewsIFA Online: 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 Annuity NewsPrudential 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 OptionFT Adviser: 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 AnnuityFT Adviser: 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 ApplicationIFA Online: 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 TaxPrudential 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 Annuity NewsPrudential 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 Annuity NewsFT Adviser: Just Retirement has reported record annuity sales
The majority of sales were in enhanced annuity policy sales which reached £349.3m...Enhanced AnnuitiesFT Adviser: 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 / ASPsBBC News: 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 AnnuitiesFT Adviser: 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 AnnuitiesInvestment International: 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 RatesIndependent: 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 AnnuitiesFT: 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 RatesBack to Top of Page
