Annuity Rate Table

How much annual income for life £10,000 buys you.

Figures as at 15th May 2012 Men Women
Level (No Guarantee)
Level 5 Year Guarantee
Indexed @ 3% Per Annum
Level with 50% Spouse (No Guarantee)

Higher rates may be available if you qualify for an enhanced or impaired annuity. Please ask for details

While correct at the time of publication, these figures are for demonstration purposes only and cannot be guaranteed
For a bespoke quote based on your circumstances please use our secure quote form of contact us on 020 33 55 4827.




This is an insert into the website : Best Pension Annuity

In order that we can demonstrate to our regulator that we are continually updating and checking our rates, we save previous copies of this table.


Pension Annuity Rates

A pension annuity converts the fund built up in a pension scheme into a regular income.
The income is then payable for the rest of your life.

Not all pension schemes automatically provide you with an income.
If you're lucky enough to be in a salary related (defined benefit) scheme then the chances are it will provide you with a pension income.

However, if like the majority of people, you’re in a money purchase (‘defined contribution’ scheme), then you will need to use your pension fund(s) to buy a pension annuity to provide you with your pension income.

You can normally start taking your pension benefits from age 55.
Current UK pension legislation allows you to start taking your pension benefits from age 55. You will normally be expected to buy your pension annuity before the age of 77. Once you've passed your 77th birthday your options may be restricted.

It pays to shop around.
You don’t necessarily have to buy your pension annuity from your pension scheme provider. Buying your annuity from another provider could increase the income available to you by up to 20%; and even more where your pension provider doesn't offer enhanced annuities.

The Consumer Financial Education Body (CFEB) has annuity comparison tables for the various annuity providers, based on the size of your fund and the annuity payment options you select. This can be useful when deciding which providers you want to request quotes from.

The income you’re offered will be based on a number of factors.
The amount of income you’ll be offered will largely depend on the following factors:

the size of your pension fund
annuity rates and market conditions when you buy
your age, sex and postcode, (if provided)
the annuity options you choose
the state of your health and certain lifestyle choices.
Your annuity income will be subject to income tax and will depend on your individual circumstances.

You can take a tax-free cash sum.

Before buying your pension annuity, you will normally be entitled to take up to 25% of your pension fund(s) as a tax-free cash sum. The remainder of your fund is then used to buy your annuity.

We offer two types of pension annuity.
Our Pension annuity will provide you with a pension income for the rest of your life that won't fall.
We offer extra income for our Pension annuity where one or more qualifying lifestyle
health risks or medical conditions apply. This is our enhanced pension annuity.

Impaired Life Annuity

If either you or your partner have or currently suffer from life threatening illnesses or could reasonably be expected to have a reduced life expectancy on medical grounds then an impaired life annuity may offer you an uplifted rate, of up to 75%, relative to a standard annuity. This is to reflect the increased likelihood of earlier death and a reduced risk, from the Life Office's point of view, of longevity. Impaired rates can often be significantly more generous than standard annuity rates.

If you suffered from a car accident and have impaired mobility, this is not life threatening and as such would be unlikely to give you an enhanced annuity rate. Had you suffered a couple of heart attacks, but these were over 10 years ago and there have been no recurring symptoms the medical underwriting departments of the Life Offices offering impaired rates would not consider you for an enhanced rate.

In addition to people who suffer serious medical conditions such as a heart attack or cancer, less serious diseases such as obesity or diabetes may also qualify for impaired life annuity rates. Some diseases such as chronic obstructive pulmonary disease and certain cancers, have decreased in prevalence. Others, such as obesity and diabetes, have grown rapidly and can be taken into account by underwriters when determining your annuity rate. Click here for a list of qualifying medical conditions.

Applying for an impaired life annuity involves a process of medical underwriting. This is where the Life Office will carry out an assessment of your life expectancy based on the medical details you have disclosed. They may request to see your medical records or, particularly with larger cases, they may ask you to attend a medical examination.


Enhanced Annuity

An enhanced, or impaired, annuity will pay a higher income to people with health problems or where their lifestyle is likely to reduce their life expectancy. We are always striving to get the best annuity rates for our clients. One question we are always being asked is, “What is the difference between an enhanced annuity and impaired annuity?”

Enhanced annuities
Enhanced annuities are available for lifestyle factors such as smoking or being overweight, even your postcode can qualify for an enhanced annuity rate. Taking prescribed medication for miWhat you need to remember is you do not need to be ill to qualify for enahnced annuity rates. Here are a few quick reminders of what might qualify:

•Smoking – 10 cigarettes a day for the last 10 years (or the equivalent cigars or tobacco)
•Obesity, high cholesterol, hypertension
•High blood pressure and diabetes mellitus

Impaired Annuities
Impaired annuities are those that use a medical condition that may significantly reduced life expectancy. A medical report may be required from your doctor. The following medical conditions will be considered:

•Heart attacks, heart surgery or angina
•Life threatening cancers
•Chronic asthma
•Major organ diseases e.g. liver or kidney
•Other life threatening illnesses such as Parkinson’s, multiple sclerosis and strokes