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

01 March 2013 last updated
Open market option new code by ABI to explain pension annuities

Hundreds of thousands of people retiring and considering the open market option will be given more information about their retirement income from annuities with the Association of British Insurers new code.

At retirement individuals with pension funds receive a pack from their provider explaining the annuity they can purchase and very little emphasis has been placed on the open market option which means 55% of people retiring accept their providers offer.

The existing provider may actually offer the highest annuity rates, however, without shopping around people cannot know for certain if this is the case and the new code from the Association of British Insurers (ABI) will help to promote these benefits.

Pension funds can be used to buy annuities that offer a lifetime income in return for a lump sum that has been accumulated over time usually in a personal pension, stakeholder of company money purchase scheme.

Open market option new ABI code
  More annuity topics
  March News 2013
  News & articles
  Archive news stories
  Flexi-access drawdown
  Annuity rates tables
  Outlook for 2022
  Annuity rates charts
  15-year gilt yields
  Latest annuity rates

Types of annuities people can purchase

Until now providers were only required to send financial information about their own annuity offer six weeks before the retirement date and they would would leave the open market option notice to the last few pages, often on inferior paper giving the impression it was not significant to the pensioner.

The ABI will require greater emphasis on awareness requiring letters to be sent two years, six months and finally the current six weeks before the retirement date. There will also be a requirement to show the amount of income that could be offered from other options including people with medical conditions.

Apart from the standard annuities offered by the provider and available from the open market option, enhanced annuity rates are offered for lifestyle medical conditions such as high blood pressure, Cholesterol, are a smoker or are overweight up to 18% higher income than the highest standard rates.

If an individual suffers from more serious health conditions such as diabetes, heart conditions or cancer an impaired annuity can be considered offering incomes of 40% higher than the highest standard annuities.

The number of people retiring and buying a pension annuity has increased from 300,000 in 2005 with premiums of £8 billion to 400,000 today with premiums of £11 billion. Of this amount up to 40% may qualify for an enhanced or impaired annuity which means many people may be missing out on a much higher income at retirement.

Related internet links:
BBC - Pension options to be made clearer under ABI code
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