Timing an annuity purchase

westv

dunstonh said:

Did an annuity quote today for a single life 66 year old with value protect (return of unpaid capital on death).  3.8% for RPI and 6.3% for level.

I wonder when/if we might ever see those rates for joint life annuities at 60.

Secret2ndAccount

dunstonh said:

Did an annuity quote today for a single life 66 year old with value protect (return of unpaid capital on death).  3.8% for RPI and 6.3% for level.

Makes me wish I was 66.
How much does Value Protect cost? If you take the don't-care-once-I'm-dead approach, can you get even more?

Albermarle

Secret2ndAccount said:

dunstonh said:

Did an annuity quote today for a single life 66 year old with value protect (return of unpaid capital on death).  3.8% for RPI and 6.3% for level.

Makes me wish I was 66.
How much does Value Protect cost? If you take the don't-care-once-I'm-dead approach, can you get even more?

On the same subject, I am presuming the Value Protect is calculated by some kind of complicated formula ?

westv

Secret2ndAccount said:

dunstonh said:

Did an annuity quote today for a single life 66 year old with value protect (return of unpaid capital on death).  3.8% for RPI and 6.3% for level.

Makes me wish I was 66.
How much does Value Protect cost? If you take the don't-care-once-I'm-dead approach, can you get even more?

I did a very quick calc using the Moneyhelper website:-

Age 60, single life, level, £300,000
£19,082 nil protect
£17,856 100% value protection

Obviously I know this is only a guide.

Secret2ndAccount

Probably the insurance costs a bit more at 66, but that still puts the return at 4%. I think that's the number that raises a few eyebrows.

woolly_wombat

dunstonh said:

Did an annuity quote today for a single life 66 year old with value protect (return of unpaid capital on death).  3.8% for RPI and 6.3% for level.

Was considering purchasing an annuity in late 2023.

Now wondering whether have reached peak annuity for this cycle.

Any thoughts welcome.

dunstonh

ow wondering whether have reached peak annuity for this cycle.

Annuity rates didnt fluctuate much during the silly week of gilt pricing.  They sort of sat it out.   But it is possible we are at or near the point.   Oh for that crystal ball.

[Deleted User]

westv said:

dunstonh said:

Did an annuity quote today for a single life 66 year old with value protect (return of unpaid capital on death).  3.8% for RPI and 6.3% for level.

I wonder when/if we might ever see those rates for joint life annuities at 60.

You can usually buy an annuity at 60 with payments starting at 66. If that helps…

MK62

woolly_wombat said:

dunstonh said:

Did an annuity quote today for a single life 66 year old with value protect (return of unpaid capital on death).  3.8% for RPI and 6.3% for level.

Was considering purchasing an annuity in late 2023.

Now wondering whether have reached peak annuity for this cycle.

Any thoughts welcome.

No way to know for sure, but if interest rates keep rising for a while yet then annuities might well edge higher.......but in the end timing an annuity purchase is like timing any investment.......a bit of a judgement call....and timing the market peak is something of a "game" of chance tbh.
For sure though, annuities now look a lot more attractive than they did a year ago.....

SouthCoastBoy

Deleted_User said:

westv said:

dunstonh said:

Did an annuity quote today for a single life 66 year old with value protect (return of unpaid capital on death).  3.8% for RPI and 6.3% for level.

I wonder when/if we might ever see those rates for joint life annuities at 60.

You can usually buy an annuity at 60 with payments starting at 66. If that helps…

what happens if you die between 60 and 66?