Telegraph annuity figures. Unbelievable?

LookingForAnAnswer

I read an article in yesterday’s Telegraph by Sam Brodbeck concerning the advantages of taking a pension annuity. He says you can now get an annuity of £7,750 on a pot of £100,000, increasing each year by inflation and including a spouse guarantee. This seems very good to me. Does anyone know where he got these figures from? Which provider? My best annuity offer so far is £5,300 on a pot of £100,000 increasing by RPI     Thanks 

HappyHarry

Was the client in the article a different age to you?

QrizB

This article?

https://www.telegraph.co.uk/money/most-hated-financial-product-really-need/

At today’s top rates, £100,000 buys a 75-year-old £9,500 a year of income, according to broker Hub Financial.

That’s a 9.5pc yield – pretty punchy when you consider the FTSE 100 is currently yielding 3.5pc. It also beats the total return (dividend and capital gains) of London’s blue-chip index over the past 20 years (6.3pc).

Now let’s say you want the annuity to pay out 50pc to your wife or husband and to increase with inflation every year. Even with these conditions, your £100,000 will provide £7,750 annually (increasing every year).

Hargreaves Lansdown is quoting this as their best buys:

That matches his £9500 level single-life but the RPI joint-life will be nowhere close.

Maybe you need to ask Hub Financial?

Marcon

LookingForAnAnswer said:

I read an article in yesterday’s Telegraph by Sam Brodbeck concerning the advantages of taking a pension annuity. He says you can now get an annuity of £7,750 on a pot of £100,000, increasing each year by inflation and including a spouse guarantee. This seems very good to me. Does anyone know where he got these figures from? Which provider? My best annuity offer so far is £5,300 on a pot of £100,000 increasing by RPI     Thanks 

How old are you?

E_zroda

QrizB said:

This article?

https://www.telegraph.co.uk/money/most-hated-financial-product-really-need/

At today’s top rates, £100,000 buys a 75-year-old £9,500 a year of income, according to broker Hub Financial.

That’s a 9.5pc yield – pretty punchy when you consider the FTSE 100 is currently yielding 3.5pc. It also beats the total return (dividend and capital gains) of London’s blue-chip index over the past 20 years (6.3pc).

Now let’s say you want the annuity to pay out 50pc to your wife or husband and to increase with inflation every year. Even with these conditions, your £100,000 will provide £7,750 annually (increasing every year).

Hargreaves Lansdown is quoting this as their best buys:

That matches his £9500 level single-life but the RPI joint-life will be nowhere close.

Maybe you need to ask Hub Financial?

Is there a link to this, or do you need an account to get that quote?
Do I read correctly that smokers can get more money? If so - what prevent people taking up smoking prior to buying an annuity?

QrizB

E_zroda said:

Is there a link to this, or do you need an account to get that quote?
Do I read correctly that smokers can get more money? If so - what prevent people taking up smoking prior to buying an annuity?

It's here, and updated weekly-ish:

https://www.hl.co.uk/retirement/annuities/best-buy-rates

It isn't a quote, it's just the output of a market survey.
Yes, smokers have a reduced life expectancy and so get a higher annuity rate. There's a health questionnaire and lying on it could void your annuity contract ...

DRS1

and they will check with your GP.

pterri

Can’t remember where but I think HL have a calculator where you can plug in any health issues. I’ve got a slight BP thing, although I’ll not look at an annuity for some years if at all. 

DRS1

Here
Annuity Quote | Hargreaves Lansdown

Albermarle

E_zroda said:

QrizB said:

This article?

https://www.telegraph.co.uk/money/most-hated-financial-product-really-need/

At today’s top rates, £100,000 buys a 75-year-old £9,500 a year of income, according to broker Hub Financial.

That’s a 9.5pc yield – pretty punchy when you consider the FTSE 100 is currently yielding 3.5pc. It also beats the total return (dividend and capital gains) of London’s blue-chip index over the past 20 years (6.3pc).

Now let’s say you want the annuity to pay out 50pc to your wife or husband and to increase with inflation every year. Even with these conditions, your £100,000 will provide £7,750 annually (increasing every year).

Hargreaves Lansdown is quoting this as their best buys:

That matches his £9500 level single-life but the RPI joint-life will be nowhere close.

Maybe you need to ask Hub Financial?

Is there a link to this, or do you need an account to get that quote?
Do I read correctly that smokers can get more money? If so - what prevent people taking up smoking prior to buying an annuity?

I have asked a similar question before, and the answer was that is would be financial fraud and you could end up with a criminal record.

Albermarle

pterri said:

Can’t remember where but I think HL have a calculator where you can plug in any health issues. I’ve got a slight BP thing, although I’ll not look at an annuity for some years if at all. 

I think half the population over 50 probably has a slight BP thing.
In any case it is normally very easy to reduce with drugs.