UK Annuities: FINANCIAL CONDUCT REGULATED SITES • QUALIFIED, TRUSTWORTHY ANNUITY ADVICE

Centralising Your Pension Annuity Search

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!


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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.
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You may be able to secure several thousand pounds more over your lifetime from annuity providers than your current pension provider. Many are unaware of this very important information. The more information you have, the more able you will be to recognise the best deal when you see it.
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All fund sizes welcomed. Why should the annuity buyer be careful? Buying from your pension provider isn't always necessarily the best idea.
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This company may be able to increase your standard pension annuity through enhanced annuities.
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Using specialist annuity industry search software, an FCA 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.
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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".
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annuity comparisons Visit Annuity Comparisons

Why would you use an automated annuity comparison website when an 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 Financial Services Register Number 483817


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 Financial Services Register 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 Financial Services Register 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 Financial Services Register 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 Financial Services Register 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 Financial Services Register Number 460094


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 Financial Services Register Number 483817


annuity comparisons Visit 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 Financial Services Register 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 Financial Services Register Number 483817


annuity comparisons Visit Annuity Key

Unlike some companies, all fund sizes are accepted. The Retirement Income Customer Hotline Limited may be able to boost your pension income by more than 40% compared with your current pension provider's offering.
Visit Annuity Key Financial Services Register Number 460094


annuity comparisons Visit Buy an Annuity

Buying an annuity from your pension provider isn't always necessarily the best option! You might be able to secure several thousand pounds more over your retirement from annuity providers than your current pension provider.
Visit Buy an Annuity Financial Services Register Number 154622


annuity office Visit Annuity Office

We recognise our annuity clients as individuals, which is why we deal with every case on a one-to-one individual basis. Did you know for instance that your 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.
Visit Annuity Office Financial Services Register Number 483817


ANNUITIES: Annuities Tax, Annuities Taxation


Pensions and Annuities Tax Research:

HMRC consultation on proposed new tables to determine annual income limits for members’ and dependants’ unsecured and alternatively secured pension income.

Introduction 1. This consultation document seeks views on the underlying actuarial assumptions proposed by the Government Actuary’s Department (GAD) to prepare updated HM Revenue and Customs (HMRC) tables for use in the determination of the maximum annual income for the purposes of member’s and dependant’s unsecured and alternatively secured pensions in the new simplified tax regime for pensions, which comes into effect on 6 April 2006. Responding to the consultation 2. The Government welcomes responses to the issues and questions raised in this consultation document by 31 December 2005. 3. Please send responses to this consultation document to: Maggie Anderson HMRC Room G66 100 Parliament Street London SW1A 2BQ Tel: 020 7147 2836 Fax: 020 7147 2745 E-mail: pensionsconsult@hmrc.gsi.gov.uk 4. All responses received may be made public unless you indicate specifically to the contrary. General confidentiality disclaimers that often appear at the end of emails will be disregarded for this purpose. 5. Inquiries or comments about the consultation process should be sent to the above address. Background 6. The simplified tax regime for pensions brings in new legislation with effect from 6 April 2006 which provides, amongst other things, for the description of the terms “relevant annuity” and “annual amount” of the relevant annuity. These terms are used throughout the legislation in relation to the application of an annual limit on the level of a member’s unsecured pension and alternatively secured pension that can be drawn under a money purchase arrangement. They are also used in relation to equivalent dependant’s unsecured/alternatively secured pensions. 7. An unsecured pension fund is the fund of tax relieved pension savings which allows the individual the facility for income withdrawal. Individuals can only have an unsecured pension fund up to age 75. An alternatively secured pension fund extends the facility for income withdrawal for those who reach the age of 75 and don't wish to use their pension savings to purchase an annuity or to provide a scheme pension. 8. In respect of the new regime, the terms “relevant annuity” and “annual amount” are defined in paragraph 14 of Schedule 28 to the Finance Act 2004 and in The Registered Pension Schemes (Relevant Annuities) Regulations (“Relevant Annuities Regulations”), a draft version of which was published on 9 March 2005 and can be found on the HMRC website at: http://www.hmrc.gov.uk/pensionschemes/relevant_annuities6.pdf 9. Those Relevant Annuities Regulations require that the “annual amount” of a “relevant annuity” is to be calculated using HMRC tables prepared by GAD. This meets industry preference to develop new GAD tables, rather than HMRC’s original suggestion of using comparative annuity tables provided by the Financial Services Authority. 10. This consultation document seeks views on the actuarial assumptions that GAD proposes will form the basis of the rates contained in the HMRC tables. 11. The tables which are the subject of this consultation will be used only in connection with the new simplified tax regime for pensions, and will apply only from 6 April 2006. For Income Drawdown under the existing tax regime, the current tables (available from http://www.gad.gov.uk/Pensions/Income Drawdown.htm ) must continue to be used. Timetable to publication 12. The consultation will end on 31 December 2005. HMRC and GAD will consider all points raised in responses and HMRC propose to publish final tables at the beginning of March 2006, in advance of the new regime coming into force on 6 April 2006. Preparing the tables – Government Actuary’s Department remit 13. The purpose of the tables is to provide a “basis amount”, and this is set out in Schedule 28 to the Finance Act 2004 (in paragraphs 10, 13, 24 and 27) as “the annual amount of the relevant annuity which could have been purchased by the application of the sums and assets representing the member’s unsecured pension fund on the nominated date ”. The “basis amount” is a measure of the annual amount of lifetime annuity income an unsecured pension fund (up to age 75, but alternatively secured pension thereafter) could generate for a member or dependant at the point of calculation in accordance with the Relevant Annuities Regulations, which will require that:  The tables will set out the annual amount of relevant annuity that would provide a level income for the member or dependant on a single life basis and with no guarantee period.  Separate tables for men and women are provided.  The tables contain rates covering an age range from 0 to 75 years old. This will be required because, for example, a child dependant could have a dependant’s unsecured pension fund from birth. Where a member of age 75 or older has an alternatively secured pension fund then they will be required to use the relevant annuity rate for a 75-yearold.  The tables will also be applicable for contracted-out rights and the tables should be based on non-impaired life annuities. Reviewing the tables 14. There will be a full review of the tables every five years. Additional “out-ofcycle” reviews will also be possible should circumstances warrant this. Work undertaken by GAD 15. GAD compared data on annuity prices each month in recent years with annuity prices modelled using a range of assumptions. These comparisons were conducted separately for male and female annuity rates (visit The Female Annuity), and at a range of ages between 55 and 70. Given the structure of the annuity specified above (level income on a single life basis with no guarantee period), there are three key assumptions:  the interest or discount rate;  the longevity of annuitants; and  the level of expenses charged by annuity providers. 16. Annuity providers will generally price level annuities with reference to the yields available at the time of purchase on government bonds with level coupons (conventional gilts) and the yields available on corporate bonds with similar characteristics. In seeking to model annuity rates observed in the market over the last few years, GAD based its modelled annuity rates on the yields on gilts available in the same month as that for which the annuity prices were quoted. This allowed a reasonably close fit between modelled annuity rates and market annuity rates over the period from early 2003 to mid 2005, for particular assumptions on longevity and expenses. 17. Therefore GAD proposes that the interest rate to be used in calculating the amount of the relevant annuity is based on market yields on conventional gilts. This implies that there will be tables showing the amount of the relevant annuity applicable at different interest rates. The yield to be used in accessing these tables should be as follows:  The 15 year yield index figure for the 15th day of the month before that in which the “relevant date” (nominated date) falls, as published in the Financial Times for the following day.1  The yield quoted in the Financial Times is convertible half-yearly. This will be allowed for in constructing the tables, and no adjustment will be needed by the users of the tables.  The quoted rate should be rounded down to the nearest 0.25% 18. The Continuous Mortality Investigation (CMI) of the UK actuarial profession collects data on the mortality and longevity experience of annuitants. GAD based its investigations on a set of tables produced by the CMI called PFA92 and PMA92, relating to the mortality experience of pension annuitants in the period 1990 to 1994. The published tables include projections to allow for longevity improvements on a number of different bases, and GAD’s investigation centred on a projection known as the “medium cohort” (‘mc’) approach. Setting the year of use of the projection to the year of the published market annuity prices gave a good fit between modelled and market rates without the need for further adjustment. 19. Therefore GAD proposes that the longevity assumption to be used in calculating the amount of the reference annuity should be:  For men, PMA92(U=2008)mc (year of use 2008 is adopted as 2008 is the mid-point of the 5-year period for which the tables should apply before the first full review);  For women, PFA92(U=2008)mc; and  Tables for children assume no mortality. 20. GAD found that use of an expense loading of 4% of the purchase price of the annuity gave a good fit of ‘modelled’ to ‘market’ rates. Therefore GAD proposes this as an assumption. 21. It was assumed that the annuity would be paid monthly in advance. 22. The last three assumptions – longevity, expenses and payment frequency – are the same as those adopted by the actuarial profession, and 1 If the 15th day of the month is a non-working day, use the figure for the previous working day. approved by the Government, in the most recently published revision of Technical Memorandum TM1: Statutory Money Purchase Illustrations (version 1.1 effective from 5 April 2005). Outcome 23. Tables on the assumptions set out above were produced by GAD, and are attached as an Annex to this document. 24. The rates in the tables in the Annex may be compared with the rates applying under the current Income Drawdown regime. The tables for the current regime (illustrative table shown below) are based on assumptions originally developed in 1995. Illustrative figures: Maximum annual income under current and proposed new drawdown regimes for a fund or purchase price of £10,000, and assuming a gilt yield of 4.39% Men – age at last birthday 55 60 65 70 Current regime £660 £740 £850 £1,010 New regime2 £672 £744 £840 £972 Best market annuity rates3 £553 £612 £706 £840 Women – age at last birthday 55 60 65 70 Current regime £600 £660 £750 £880 New regime £648 £708 £780 £888 Best market annuity rates £546 £590 £651 £743 The tables 25. The proposed tables are contained at Annex A. When the final tables are published at the beginning of March 2006, they will be accompanied by instructions similar to those used under the current regime, available at http://www.gad.gov.uk/Pensions/Incomedrawdown.htm. Questions Question 1: Are the assumptions proposed by GAD suitable for the purpose specified? 2 The figures for the new regime are the maximum amount that can be drawn from an unsecured pension arrangement, that is, 120% of the reference annuity amount. Of course drawing this maximum income, in excess of the reference annuity amount, can be expected to deplete the fund such that the amount of the reference annuity will be somewhat lower at the next 5-yearly review. 3 Reproduced from Pensions Management magazine, October 2005 edition. Question 2: Does the use of an actuarial basis that is consistent with TM1 have administrative attractions for pension providers? Question 3: Are the 5 yearly reviews sufficient to ensure that the tables continue to mirror commercial annuity rates? If not, what frequency of review would you suggest? Question 4: We have started the adult rate tables at age 25, because there is virtually no difference between annuity rates for a 25 year old and, say, a 23 year old. This would mean that for those aged 23 and 24, they would be required to use the 25-year-old annuity rate. Is this a reasonable approach? Question 5: The Relevant Annuities Regulations would require that for any dependant of age 22 or less (and not just dependent children of the member), they would be required to use the figures from Table 3 for ascertaining the annual amount of the relevant annuity. This would allow the full amount of the fund to be drawn by the time the person reaches age 23. There may be certain circumstances where such a dependant may actually continue in drawdown beyond age 23, such as if the dependant is a spouse or is a child dependant because of physical or mental impairment. As there is no requirement for an annual amount of income to be drawn from an unsecured pension fund, there would be sufficient flexibility so that the pension fund would not have to be fully drawn by the time the dependant reaches age 23. Is it a reasonable approach to require that the maximum for all dependants under age 23 will be determined by reference to Table 3? Question 6: Would it be beneficial to have separate tables for child dependants of the member and other dependants of the member under age 22? Using the tables for children could provide a very high level of income withdrawal in the early years and potential depletion later. Annex – the tables TABLE 1 - MEN 100% Income Drawdown/withdrawal from money purchase arrangements TABLE 2 - WOMEN 100% Income Drawdown/withdrawal from money purchase arrangements TABLE 3 - CHILDREN 100% Income Drawdown/withdrawal from money purchase arrangements http://customs.hmrc.gov.uk/channelsPortalWebApp/downloadFile?contentID=HMCE_PROD1_024762 ?©Crown Copyright Keywords: Pension, Annuities, Annuity, Pensions, Annuities Tax, Taxation 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 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 Financial Services Register Number 530750


Annuity Plan Visit Pension Annuity Plan

You may be able to secure several thousand pounds more over your lifetime from annuity providers than your current pension provider. Many are unaware of this very important information. The more information you have, the more able you will be to recognise the best deal when you see it.
Visit Pension Annuity Plan Financial Services Register Number 530750


annuities plan Visit Annuities Plan

All fund sizes welcomed. Why should the annuity buyer be careful? Buying from your pension provider isn't always necessarily the best idea.
Visit Annuities Plan Financial Services Register Number 530750


annuity comparisons Visit Pension Annuity Planner

This company may be able to increase your standard pension annuity through enhanced annuities.
Visit Pension Annuity Planner Financial Services Register Number 530750


annuity comparisons Visit Annuity Base

Using specialist annuity industry search software, an FCA 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 Financial Services Register Number 530750


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 Financial Services Register Number 483817


annuity comparisons Visit Annuity Comparisons

Why would you use an automated annuity comparison website when an 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 Financial Services Register Number 483817


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 Financial Services Register 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 Financial Services Register 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 Financial Services Register 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 Financial Services Register 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 Financial Services Register Number 460094


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 Financial Services Register Number 483817


annuity comparisons Visit 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 Financial Services Register 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 Financial Services Register Number 483817


annuity comparisons Visit Annuity Key

Unlike some companies, all fund sizes are accepted. The Retirement Income Customer Hotline Limited may be able to boost your pension income by more than 40% compared with your current pension provider's offering.
Visit Annuity Key Financial Services Register Number 460094


annuity comparisons Visit Buy an Annuity

Buying an annuity from your pension provider isn't always necessarily the best option! You might be able to secure several thousand pounds more over your retirement from annuity providers than your current pension provider.
Visit Buy an Annuity Financial Services Register Number 154622


annuity office Visit Annuity Office

We recognise our annuity clients as individuals, which is why we deal with every case on a one-to-one individual basis. Did you know for instance that your 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.
Visit Annuity Office Financial Services Register Number 483817