Annuity Tables

Annuity Tables can be used to give an idea of what level of annuity rates you might expect to get from the annuity providers who participate in them. One thing they are not designed to do is offer a definitive annuity quotation, as this can only be done on an individual bases by means of speaking to an IFA, annuity provider or annuity specialist such as ourselves. In fact to offer a comprehensive annuity quote requires information relating to a person’s age, location, state of health and also whether they are looking for a single or joint life annuity. As there are differences not only in the rates offered but also the products offered between the providers, relying on an annuity table not an adequate method of finding the best annuity rates. The highest paying annuities are enhanced annuities but these are not offered by all insurance companies, so shopping around is vital.

Another important point to consider is that not all annuity providers offer up their rates for comparison, only the ‘open market’ providers do. In addition to this, the illustrative rates you see on an annuity table are usually based on a £100,000 pension fund, which is much higher than the average UK pension fund. So if you have an average pension pot the reality is your income is likely to be much lower than the illustrative rates. So while annuity tables can be a useful guide, they should not be used as a means of taking preference for one provider over another or as a reason to not shop around for the best deal. If you speak to an annuity specialist they will be able to able to ascertain which annuity best suits you needs, and whether you are eligible for enhancements. Also they will be able to advise you on options such as building in annual escalations to help mitigate against the problem of inflation.