Some annuity tables showing different best UK annuity rates. Take a look at the following scenario, featuring three financial advisers asking different questions of the same client with a serious health problem, and then coming up with greatly different annuity quotes because of the nature of the different questions they asked. The client is male, 65, with a £100,000 pension fund, after tax-free cash. Income shown is monthly in advance, level, with no guarantee period. (Case study and rates taken March, 2009)

The results in the table clearly show that you need to talk to a specialist annuity adviser, and give very full answers, to get the best UK annuity rates. 

The best deal for the client; an extra £863 each and every month, or an extra £10,356 per year, for LIFE

What follows are some annuity tables showing best UK pension annuity rates. First, though, the cost of adding certain options to your annuity. If you choose to add a five year guarantee period, you could reduce your annuity income by around 0.5%. If you choose to add a 50% spouse’s pension benefit with a joint life annuity, you could reduce your annuity income by around 9%. If you choose to have annuity payments that increase by 3% – 5% per annum you could reduce the initial income by 30% – 35%; perhaps even more for an inflation proof annuity.

Many people at retirement consider themselves to be fit and healthy, but there are certain lifestyle issues that could effect the UK annuity rates you get. Being greatly overweight can make a difference. If you’re classed as clinically obese this could add around 8.2%. If you’re a heavy drinker this could add around 9%. In addition, living in a ‘less prosperous’ area could make a difference of around 7% to the annuity rates you get, as we now have postcode annuities rated on where you live. According to recent research from some leading annuity providers around 30% of people at retirement age are classed as overweight, and 26% regularly consume alcohol.

These annuity tables are based on a £100,000 pension fund, with monthly incomes, level, and no guarantee period. Naturally, accurate figures depend on your circumstances.

Female lives

A bit about the FSA, annuities, UK annuity rates, smoker and enhanced annuity rates. You might think that the Financial Services Authority (FSA) offers you a truly comprehensive picture in respect of the various types of pension annuity rates available in the market place, but don’t be fooled. The FSA pension annuity rate tables are good, but they don’t give you enough information, and there are a couple of sound reasons for this. First, not all insurers, the annuity providers, provide their annuity rates, so you can’t really make a fair comparison. Secondly, when it comes to impaired and enhanced annuity rates for people with ill health, there isn’t really anything there. Why? Because these annuity quotes are less precise. So if you are looking at the FSA’s website, you have no way of knowing the higher levels of retirement income available if you do have ill health. With regards to smokers, again not all rates are shown.

With the service from rightannuity.co.uk, we aim to help you get a better pension income by giving you examples of the levels of income that might be available to you, with some of the better smoker annuity rates, enhanced annuity rates, and standard conventional annuity rates. With enhanced annuities we provide you with eight examples of medical conditions, with example annuity quotes, which we then compare to leading conventional annuity quotes to illustrate the different levels of income available. I’m not saying that what we do is in any way better that the FSA’ website offering, just different, and what we do is arguably that bit more comprehensive.

Pension annuity rate tables; new layout for enhanced annuity and smoker annuity rates soon to be launched on this pension annuity website. The leading standard annuity quotes we will be using are likely to be higher than the annuity quote you have from your current pension plan provider. If so, the percentage difference illustrated when compared to your quote will be that much greater. You also need to bear in mind that any increase in retirement income that you might be entitled to is payable each and every month of each year and for life. If the increased payment is, say, £30 per month, it could actually be payable for 20 years or more, and that’s a total of £7,200 extra for those 20 years.

The enhanced smoker annuity rates we are using have been supplied by MGM Advantage, a leading enhanced annuity provider, and the leading standard annuity quotes have been supplied to us by AEGON Scottish Equitable. These quotes are representative of some of the best pension annuity rates available. The figures shown are on a level payment basis, which means that the pension annuity is fixed for life, payable monthly in arrears. Rates do change and you should always ensure you get updated quotes. Keep an eye out for these changes.

Well, do they? Do pension annuity rate tables show the best pension annuity rates for retirement? You see, I don’t think that they do, and I know this might actually seem a bit odd. However, it is actually a very valid  question, especially if you are not too sure about precisely what you are researching and the various types of annuities and annuity options available to you. I mean, you might think you are seeing the best rates, for example, on the FSA’s comparative tables, but are you? Because you don’t really know if they are showing you everything that is available, and, take it from me, they’re not.

The whole issue of finding what you want in annuity rate tables gets even more important if you suffer from ill health, or perhaps take prescription medication regularly, or even if you are perhaps a smoker. If you fit into these categories then annuity rate tables are of no real use because such rates, enhanced or impaired life annuity rates, are not included. They are far too complex because of the various conditions that might need to be considered. You probably need to speak with a specialist annuity adviser to get the right outcome in these circumstances, but it could be worth a great deal in your retirement income.