Annuity Rates At 55

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Annuity rates at 55 updated: $QUOTEDATE$

Annuity rates can vary significantly between providers so it is important to check the rates available using your right to shop around, known as the ‘open market option’.

Comparing the rates available with the rate offered by your pension company can significantly increase your income in retirement as the rate provided by your pension company may not be the best rate available, even if you have saved with them for a significant period of time.

What factors affect an annuity rate?

There are several factors that affect the rates offered by annuity companies and these are outlined below:

Health and Lifestyle
Whether you are overweight, consume a high level or alcohol or currently smoke will affect the rate offered to you. Also if you have suffered a medical condition such as a heart attack or a stroke, it is deemed that your life expectancy will be reduced and therefore your annuity income will be higher.

Postcode
Some annuity companies will also base their rates on your postcode as people in less affluent areas are expected to have a shorter life expectancy than those living in wealthier areas.

Other Factors
There are a number of factors that affect the annuity rate that providers can offer, beyond your own personal circumstances. These can include:

The value of government bonds, or gilts, which insurance companies buy to fund annuities.

The Bank of England base rate, which has an influence of the level of interest the government will pay on its bonds.

Demand for gilts - when they are in high demand, interest payments fall, depressing annuity rates. When they are in low demand, rates may rise.

Other monetary policy - quantitative easing (QE) has also affected annuity rates, as this pushes gilt yields down further, as the purchase of gilts in mass quantity by the Bank of England has reduced interest payments.

Example Annuity Rates updated on $QUOTEDATE$

We have included current annuity rates to provide some examples of what is available. The rates quoted are for a monthly annuity payable in arrears and do not include a dependents pension which might be important for you to consider. The companies we have quoted from include Legal and General, MGM Advantage, Reliance Mutual, Partnership, LV=, Canada Life, Prudential, Standard Life, Aviva, Just Retirement, Scottish Widows, Friends Life and Hodge Lifetime.

Typical Annuity Rates At Age 55 For £25,000


Pension Fund £25,000Age 55 HealthyAge 55 SmokerAge 55 After A Heart Attack
Level, No GuaranteeN/AN/AN/A
Level 5 Year GuaranteeN/AN/AN/A
RPI Linked - No GuaranteeN/AN/AN/A
RPI Linked - 5 Year GuaranteeN/AN/AN/A
Last Updated: $QUOTEDATE$ (Source: PayingTooMuch.com)

Typical Annuity Rates At Age 55 For £50,000


Pension Fund £50,000Age 55 HealthyAge 55 SmokerAge 55 After A Heart Attack
Level, No GuaranteeN/AN/AN/A
Level 5 Year GuaranteeN/AN/AN/A
RPI Linked - No GuaranteeN/AN/AN/A
RPI Linked - 5 Year GuaranteeN/AN/AN/A
Last Updated: $QUOTEDATE$ (Source: PayingTooMuch.com)