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


1 February 2013 last updated
UK annuity income higher as manufacturing sector expands

The manufacturing sector expanded for the second month in a row although at a slower rate increasing confidence in equity markets pushing UK annuity income higher for pensioners.

The purchasing manager index (PMI) for manufacturing data continued the expansion following the December 15-month high of 51.4 although the figure for January was at a lower rate of 50.8. A figure above 50 indicates growth and a figure below contraction.

Equity markets welcomed the results increasing 70 points to 6,347 the highest level of the year. As the majority of people retiring remain invested until they buy annuities it means their pension fund will be higher and generate more annuity income.

Last quarter experienced a contraction in Gross Domestic Product (GDP) of 0.3% and the expansion for January will help reinforce the positive markets and keep pension funds high at least in the short term.

 
UK annuity income and manufacturing sector
 
  More annuity topics
  February News 2013
  News & articles
  Archive news stories
  Flexi-access drawdown
  Annuity rates tables
  Outlook for 2024
  Annuity rates charts
  15-year gilt yields
  Latest annuity rates
 

Annuity income will increase this month

The rise in equities is a welcomed boost for people retiring now after the falling annuity rates which reached an all time low in January even though gilt yields increased. Annuities are based on the 15-year gilt yields and last month these increased by 29 basis points and as a general rule this would mean a 2.9% increase in annuity rates.

However, standard pension annuity rates actually decreased by 0.46% which means rates are expected to increase by 3.36% on average.
Providers may have been recovering from the rate decreased as Unisex annuity rates were introduced by the EU Gender Directive on 21 December 2012. This resulted in male rates decreasing by 2.77% and female rates increasing by 3.95% although the expected increase already takes this into account. For the latest updates see Annuity Rates Review.

Other options to help increase annuity income

The combination of increasing equities while investors are positive about the economy and rising annuity rates can make a significant difference to the income at retirement.

People can further enhance the income by 30% this by using an investment backed or with profits annuity. An individual can accept a slightly higher risk the income if they have pension income such as a final salary pension or more than one personal pension fund.

Alternatively if they suffer from a lifestyle medical condition such as high blood pressure, Cholesterol, are a smoker or are overweight they could receive a higher income from an enhanced annuity. For more serious medical conditions such as diabetes, heart conditions or cancer an impaired annuity can increase incomes by 40% over standard annuities.

News related stories:
Pension annuity income outlook good as service sector grows
Buying annuity income boost from UK manufacturing data
Best annuities threat for pensioners after UK service sector output falls
Pension annuity income could be hit by Triple dip recession
Pension annuity income struggles to rise as UK manufacturing slows
Related internet links:
BBC - UK manufacturing activity edges higher
Telegraph - UK manufacturing expands for second month
Guardian - UK manufacturing drops back
Annuity Rates
  Age Single Joint  
  55 £6,132 £5,784  
  60 £6,532 £6,234  
  65 £7,247 £6,808  
  70 £8,170 £7,616  
£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 edge up with high yields
Annuity rates edge up Annuity rates up with gilt yields at a high of 4.71% as UK inflation misses target
Retirement income up 121% in four years
Record annuity rates and equity markets Retirement income up 121% with record high annuity rates and equity markets
Annuities rise with higher US inflation
Annuities and gilts rise Enhanced annuities rise as gilt yields reach record 4.70% with higher US inflation
Gilt yields record high after strong US data
Gilt yields at record high of 4.65% Gilt yields hit record high of 3.65% after strong US inflation and economic data
Annuity rates could recover by 3%
Annuity rates could recover 3pc Annuity rates could recover +3% after strong US jobs sends gilt yields higher

  Follow Us:
You can follow the latest annuity updates on Twitter or as a fan on Facebook
  Facebook Page Twitter Page
Sharingpensions.co.uk   This website is for marketing purposes only and does not provide specific financial or legal advice. The website security is issued by GeoTrust and Equifax. Copyright©2001-24 Sharingpensions.co.uk. All Rights Reserved