HL verses Moneyhelper annuity quotes/checker question/view.

Somebody

Which month's YoY RPI is applied to the annual increase?  

Here's a table from an AI bot for the last 5 years.  I can't vouch for the accuracy, but the difference in say, 13.4 from Jan '23 vs 5.2 in Dec '23 is significant!

Year / Month	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep
2020/2021	1.3	0.9	1.2	1.4	1.4	1.5	2.9	3.3	3.9	3.8	4.8	4.9
2021/2022	6.0	7.1	7.5	7.8	8.2	9.0	11.1	11.7	11.8	12.3	12.3	12.6
2022/2023	14.2	14.0	13.4	13.4	13.8	13.5	11.4	11.3	10.7	9.0	9.1	8.9
2023/2024	6.1	5.3	5.2	4.9	4.5	4.3	3.3	3.0	2.9	3.6	3.5	2.7
2024/2025	3.4	3.6	3.5	3.6	3.4	3.2	4.5	4.3	4.4	4.8	4.6	n/a

QrizB

... the difference in say, 13.4 from Jan '23 vs 5.2 in Dec '23 is significant!

It isn't really, not if you look at the whole series and don't try to take one year out of context.

sandsy

Remember that RPI will be aligned with CPI-H from 2030. This means that annuity increases will likely be lower than if this change wasn't happening.

DRS1

I think the RPI figure is taken from 3 months before the anniversary of your annuity.

OP RetirementLine gets mentioned on here (and I confess I used it last year).  It is a broker not an IFA.  Be warned if you put your details into their quote generator you WILL get a follow up call from someone there.

Somebody

QrizB said:

... the difference in say, 13.4 from Jan '23 vs 5.2 in Dec '23 is significant!

It isn't really, not if you look at the whole series and don't try to take one year out of context.

What??  The "whole series" in my table above starts at 1.3 and ends at 4.6, peaking somewhere in the middle at 14.2.

So what's the answer to my question: which month's YoY RPI is applied to the annual increase? 

DRS1

Somebody said:

QrizB said:

... the difference in say, 13.4 from Jan '23 vs 5.2 in Dec '23 is significant!

It isn't really, not if you look at the whole series and don't try to take one year out of context.

What??  The "whole series" in my table above starts at 1.3 and ends at 4.6, peaking somewhere in the middle at 14.2.

So what's the answer to my question: which month's YoY RPI is applied to the annual increase? 

Did you ignore my reply?

RogerPensionGuy

Somebody said:

Which month's YoY RPI is applied to the annual increase?  

Here's a table from an AI bot for the last 5 years.  I can't vouch for the accuracy, but the difference in say, 13.4 from Jan '23 vs 5.2 in Dec '23 is significant!

Year / Month	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep
2020/2021	1.3	0.9	1.2	1.4	1.4	1.5	2.9	3.3	3.9	3.8	4.8	4.9
2021/2022	6.0	7.1	7.5	7.8	8.2	9.0	11.1	11.7	11.8	12.3	12.3	12.6
2022/2023	14.2	14.0	13.4	13.4	13.8	13.5	11.4	11.3	10.7	9.0	9.1	8.9
2023/2024	6.1	5.3	5.2	4.9	4.5	4.3	3.3	3.0	2.9	3.6	3.5	2.7
2024/2025	3.4	3.6	3.5	3.6	3.4	3.2	4.5	4.3	4.4	4.8	4.6	n/a

Reference year on year RPI uplifting. 

My understanding is if the policy uses say RPI of September and say payments are adjusted in December. 

If say monthly RPI peaked in September compared to all other months, lucky policyholder as payments go up in December.

If say monthly RPI suddenly fell in September compared to other months, then the uptick payment in December will be soft this year, but as it's cumulative, it will get picked up the following year I think,.

So its swings and roundabouts, a peeky up September and policyholder gets uptick sooner, a low September and policyholder gets a lower uptick this December, but it recovers the following December.

QrizB

Somebody said:

QrizB said:

... the difference in say, 13.4 from Jan '23 vs 5.2 in Dec '23 is significant!

It isn't really, not if you look at the whole series and don't try to take one year out of context.

What??  The "whole series" in my table above starts at 1.3 and ends at 4.6, peaking somewhere in the middle at 14.2.

Your specific comparison - which I quoted - was taking two values for one year out of context.

The answer is still "it doesn't really make any difference".