Annuity Rates, Annuities, Pensions, Divorce Annuity Rates Charts
Home News Annuity Rates Annuities Pension Annuity Impaired Annuity Annuity Quotes Pensions Divorce Resources

7 September 2012 last updated
Retirement annuity income benefits from share price rise

Retirement annuity income for pensioners at retirement has been helped by the rise in share prices after the ECB announced details of plans to support the euro.

Equity markets around the world have been boosted with the FTSE-100 index higher by 119 Points at 5,777, the Dow jones index 244 up at 13,292 and European markets up between 2.2% to 4.91%.

Pensioners about to purchase their retirement annuities that are still invested in equities will benefit as a larger pension fund will mean a larger pension annuity and more income for their lifetime.

The increase in markets is after the European Central Bank (ECB) meeting presented the debt rescue plan designed to buy the bonds of countries that request a bailout. The ECB is prepared to purchase an unlimited amount of sovereign bonds of struggling countries such as Spain and Italy to prevent the cost of borrowing reaching unaffordable levels.

Pensioner annuity income rise
  More annuity topics
  September News 2012
  News & articles
  Archive news stories
  Flexi-access drawdown
  Annuity rates tables
  Outlook for 2022
  Annuity rates charts
  15-year gilt yields
  Latest annuity rates

Annuity income rises 2% with equity gains

Investors with a pension portfolio of well managed investments with exposure to the UK, US and Europe will have experienced increases of about 2% although not all funds will have increased by this amount.

For pensioners retiring now to purchase their pension annuities they should consider converting this fund to cash to secure the gains they have received. Purchasing a UK annuity could take up to four weeks for some providers and there is a risk that equity markets will fall once the market has discounted the benefits of the ECB plan. Markets briefly reached a low of 5,267 on 18 May and have since increased to 5,777 or a gain of 9.6%. This counters the fall in annuity rates over this time and therefore for those taking benefits and buying an annuity it is important to lock in the gains while they can.

For example, a male aged 65 with a fund of £100,000 in May invested in UK equities could purchase an annuity of £6,021 pa on a single life level basis. By September retirement annuity rates have reduced and the income is now only £5,746 pa. UK equity markets have increased since May from 5,267 to 5,777 and if his fund reflected this rise would now be worth £109,600 and he could purchase an annuity £6,297 pa thereby increasing his annuity income at retirement.

Retirement annuity rates last reduced in August and have now reduced further than the fall in gilt yields suggesting there may be the possibility for an increase in annuity rates shortly.

News related stories:
Pension annuities gain as bailout for Spain sees markets up
Annuity income at retirement reduces with weakening global economies
Annuity income lower as equity markets continue to fall
Retirement annuities for pensioners benefit from equity market surge
Retirement annuities income benefit from higher European markets
Related internet links:
Guardian - Draghi's eurozone plan boosts shares and euro
Annuity Rates
  Age Single Joint  
  55 £4,574 £4,142  
  60 £4,961 £4,610  
  65 £5,691 £5,238  
  70 £6,478 £6,098  
£100,000 purchase, level rates, standard
Unisex rates and joint life basis
  Annuity Rates  
Annuity Quotes
  Plan your annuity and get quotes from the 12 leading providers  
  free annuity quote Free Annuity Quotes
  annuity quote no obligation No Obligation
  annuity quote all providers From All Providers
  Annuity Quote  
  Annuity Rates News:

Annuity rates rise due to inflation fears
Gilt yields rise over 2pc 15-year gilt yields are up 28 basis points as investors expect rise in base rates
Annuity rates soar 19pc to high for 6 years
Annuity rates soar19% Annuity rates reach a six year high up 19% since January 2021 as gilt yields rise
Gilt yields rise 20 basis points
Gilt yields rise 20 basis points Federal Reserve to raise rates more aggressively with gilt yields up to 1.82%
Annuities are at a 3 year high
Pension annuities could fall with Omicron variant Higher gilt yields sends annuities to a three year high up 11.1% in the last year
Pension annuities rise 9pc over a year
Pension annuities rise 9pc Pension annuities rise almost 9pc as yields increase ahead of higher base rates

  Follow Us:
You can follow the latest annuity updates on Twitter or as a fan on Facebook
  Facebook Page Twitter Page   This website is for marketing purposes only and does not provide specific financial or legal advice. Website security issued by GeoTrust and Equifax. Copyright©2001-22 All Rights Reserved