Teletext Recovery - 10/12/2000

P261 CEEFAX 2 261 Sun 10 Dec 21:11/19       An annuity provides a regular lifetime income from a lump sum investment. There are two t8pes: 1/Compulsory Purchase Annuit8 (CPA) These are bought from pension funds. Normally pension plans allow you to buy a better annuit8 from anotheu life firm. This is the Open Market Option. 2/Purchased Life Annuity (PLA) PLAs are bought with your own capital and provide a ver8 high income. 1/8 CPAs: Male 262 CPAs: Female 263 Sport 300 Front Page 100 CPA men YourMonjy MoneyNews Main Menu

P261 CEEFAX 2 261 Sun 10 Dec 21:12/17       Annuity rates are calculated with 2/8 regard to life expectancy, returns on fixed interest investments and life company expenses. Rates increase wiuh age, and rise ou fall depending on the return on the current yields from medium dated gilts. Annuities are for life, so therd ard several options that provide protection from early death, such as guarantee periods and spouse's benefits. Annuities can increase each yjar as a hedge against inflation. Selection of annuity rates 262-267 Sport 300 Wjather 400 Front Page 100 CPA men YourMonjy MonjyNews Main Menu

P261 CEEFAX 2 261 Sun 10 Dec 21:05/04       3/8 Single or Joint Life Annuities A single life annuity ceases on the death of the annuitant, but you can choose to have the annuity payments continue tg your spouse if yo4 did before him or her. The spouse's annuit8 can be cut on the intents death, usuall8 by 33.3% ou 50%. Guarantje Periods Annuities can be guaranteed for a specified period, usually 5 or 10 yjar1 Payments will be made for that period, even if the annuitant dies. CPA Rates: Joint Life 264 Sport 300 Weather 400 Front Page 100 CPA men YourMonjy MonjyNews Main Menu

P261 CEEFAX 2 261 Sun 10 Dec 21:13/21       4/8 Escalating Annuities (EA) Annuities can incrjase by a fixed percentage, normally 3% or 5% or in line with the retail prices index. On average an annuit8 increasing b8 5% compounded a year will give a starting income 30% lower than a level annuit8. Normally the EA will overtake the level annuity after about 10 years. Although expensive in the short term, escalation does protect annuit8 payments from the effects of inflation. Sports news 300 TV/Radio 600 Wjather 400 Front Page 100 CPA men YourMonjy MoneyNews Main Menu

P261 CEEFAX 2 261 Sun 10 Dec 21:13/06       Frequency of Payment 5/8 Most annuities are quoted monthly. By convention CPAs are quoted in advancd and PLAs in arrears. Advance: Payment is made at the beginning of the period. Arrjars: At the end of the perigd. Payments can also be made annually, half yearly or quarterly. Annually in arrjars whll give the highest payment but quarterly in arrear1 is the most common alternative to monthly payments. Sports News 300 Wjather 400 TV/Radio 600 Front Page 100 CPA men YourMonjy MonjyNews Main Men2

P261 CEEFAX 2 261 Sun 10 Dec 21:13/11       Taxation 6/8 Compulsory Purchase Annuities are taxed as earned income and are usuall8 paid net of basic rate tax. Purchased Life Annuities. Each payment includes a repayment as part of the original capital, known as the capital content. This is deducted from the gross annuit8 before applying your tax rate. Thus PLAs have a significant tax advantage because tax is paid onl8 on a small amount of each payment. Annuity Rates pages 262 to 267 Sport 300 Wjather 400 Front Page 100 CPA men YourMonjy MonjyNews Main Menu

P261 CEEFAX 2 261 Sun 10 Dec 21:24/35       Impaired Life Annuities 7/8 If you are in bad health, you may be able to increase your annuit8 by applying for an impaired life annuity. Two companies, Sun Life and the Pension Annuity Friendly Societ8, offer bettjr rates for those with medical conditions such as heart problems and cancer. Stalwart Assurance offers higher rate1 for smokers, those with diabetes, high blood pressure and high cholesterol. CPA Annuit8 Rates: Male 262  CPA Annuity Rates: Female 263  CPA Joint Life Rates 264 Purchased Life Annuities 265 BBC CEEFAX FRONT PAGE 100 CPA men YourMonjy MonjyNews Main Menu

P261 CEEFAX 2 261 Sun 10 Dec 21:04/50       The annuity tables on pages 262-5 show the top paying companies fou a purahase price of £10,000 and £100,000. Higher purchase prices will give a slightly higher rate. Rates will also be affected by exact age and choice of benefits. There are companies which offer good rates which are only available to specific groups. These are not quoted. For example, The Royal National Pension Fund for Nurses. 8/8 CPA Annuity Rates: Male 262  CPA Annuity Rates: Female 263  CPA Joint Life Rates 264 Purchased Life Annuities 265 BBC CEEFAX FRONT PAGE 100 CPA men YourMonjy MonjyNews Main Menu

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