How much could your pension pay?
Monday 15 July 2013
At retirement, squeezing maximum income from your pension is vital. Current annuity rates are low, making it more important than ever to shop around. In May 2013, Hargreaves Lansdown clients boosted their annuity income by 33.1 per cent* on average.
The following best-buy annuity rate tables show you a snapshot of some of the best UK annuity rates currently available from leading providers such as Legal and General, Prudential and Aviva, plus many more. Annuity quotes are only guaranteed for a short time - the rate table is updated weekly, so they may have changed since our last update**).
To get an up-to-date personal annuity quote you can use Hargreaves Lansdown’s online annuity calculator. Getting a quote using your personal information is vital in any case as it could boost your income by as much as 40 per cent - even factors such as your health or postcode can increase your annuity.
The annuities shown in this table are paid monthly in advance, based on a purchase price of £100,000, using an average postcode and assuming good health.
Why is postcode important?
In recent years, your postcode has become an important factor in setting annuity rates so it's important you use your real postcode - it could mean a 10 per cent difference. Like car insurance, annuity providers now base their quotes on where you live.
Why is health important?
An enhanced annuity will pay more income in retirement by taking your health and lifestyle into account. Unlike other insurance company products where having a medical condition could put up the price, with an annuity having health conditions could increase your income.
It is estimated 60 to 70 per cent of over-55s could be eligible for an enhanced annuity, according to research from Just Retirement and MGM Advantage.
You do not need to be seriously ill to qualify for enhanced annuity rates. Being overweight, consuming alcohol, having raised blood pressure or cholesterol and smoking can all mean a higher rate. More serious conditions such as heart disease or cancer can qualify for higher enhancements. You may also qualify if you have been given the all clear from a condition you have had in the past.
* Based on the difference between the top and bottom quote obtained by clients using HL online enhanced annuity comparison service from 24 May to 24 June 2013 (1,688 sets of open market option results analysed). The actual enhancements will depend on health, lifestyle, and existing provider’s quotation.
**Latest tables are available via the annuity rates section of the Hargreaves Lansdown website.
Annuity rates can change regularly and may go up or down in the future. Once set up, an annuity cannot normally be changed or cancelled, so it is important to consider all your options carefully. This information and Hargreaves Lansdown services are not advice. If you are unsure of the suitability of any investment for your circumstances please seek advice.
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