Historic Annuity Rates

sgx2000

What is the highest annuity rate ever?

FIREDreamer

sgx2000 said:

What is the highest annuity rate ever?

I have seen guaranteed annuity rates of 12 in products written in the 1980’s.

i.e. a £100,000 fund buys a £12,000 p.a. level single life annuity at age 65.

Also an annuity rate of 16 at age 70 giving a £16,000 p.a. annuity.

Male rates.

FIREDreamer

Hargreaves Lansdown has three years in a graph …

dunstonh

I have seen over 15% previously.  However, that was a GAR and not OMO.  Double digits are pretty common with some GARs.

FIREDreamer

Google turned up this document which has rates from the 1960s onwards in graphs …

https://deliverypdf.ssrn.com/delivery.php?ID=638096082013120020067011021024088091053039023004022060096112029072001086091018095005100007032007024026014123109078022030007076045005010079051074019090082067022119088028013016000127123085087100126112104064124064031107006120010120100071077066071099065127&EXT=pdf&INDEX=TRUE

eg

sgx2000

So, although the current rates are the highest in 10+ years... they have historically been x3....

westv

sgx2000 said:

So, although the current rates are the highest in 10+ years... they have historically been x3....

But remembering life expectancy has greatly improved since the 60s/70s.

FatFred66

westv said:

sgx2000 said:

So, although the current rates are the highest in 10+ years... they have historically been x3....

But remembering life expectancy has greatly improved since the 60s/70s.

It's interest rates that are the difference. An extra 5-10 years life expectancy makes far less difference than the BOE rate varying from 11% to 17% to 0.25% and back up to 5.25%

westv

FatFred66 said:

westv said:

sgx2000 said:

So, although the current rates are the highest in 10+ years... they have historically been x3....

But remembering life expectancy has greatly improved since the 60s/70s.

It's interest rates that are the difference. An extra 5-10 years life expectancy makes far less difference than the BOE rate varying from 11% to 17% to 0.25% and back up to 5.25%

I meant would people rather have the rates and the life expectancy of then or now?