Pension annuity rates are published on a frequent basis to give you an indication of the range of rates typically available. A selection of annuity rates are available to you on exercising your open market option…the right you have to move your pension fund to another pension provider for a better annuity rate. The Financial Services Authority (FSA) also has comparative tables on their website for guidance. What follows is a short table of the top six annuity providers, for a £100,000 purchase price, joint-life, with a two-thirds widows benefit. The payments shown are level, paid monthly, and guaranteed for two years:
Man 65, Wife 60
Aegon Scottish Equitable £6734
Canada Life £6726
Prudential £6583
Norwich Union £6576
Legal and General £6382
Standard Life £6284
Important: these annuity rates do not take into account any lifestyle or medical conditions, or whether one or either of the married couple smokes. They are just basic indicative rates. What they do show is that there is a range of annuity rates out there, that you should shop around, and that an independent financial adviser is best placed to find the highest rates for you.
