Taking your pension - comparing our annuity products

Example 2 - Female annuitant:

Comparing the Invested Lifetime Annuity with the Level Lifetime Annuity for a female taking pension benefits at age 60.

    If you are a woman aged 60 you can on average expect to live to age 89 (1)    
    arrow pointing downwards    
   

Choose your type of
Lifetime Annuity now.

Assumed Fund value: £10,000

   
  arrow pointing to the left and down arrow pointing to the right and down  
     
  LEVEL LIFETIME
ANNUITY 		  INVESTED LIFETIME
ANNUITY 		 
  downwards pointing arow   downwards pointing arow  
  You start getting
£540 each year 		NOW You start getting
£457 each year 		 
         
After 20 years, you
will still be getting
£540 each year 		AFTER
20
YEARS		 After 20 years, you
will be getting
£740 each year (2) 		 
   
In total, you have
now been paid £10,800 		In total, you have
now been paid £12,182
         
  Your future pension
will stay at
£540 each year 		AFTER THAT Your future pension will
keep increasing as future
bonuses are declared (2) 		 

Notes:

  1. Life expectancy based on mortality tables published by the Continuous Mortality Investigation Board.
  2. The bonuses declared depend on the investment returns and other factors affecting the with-profits fund. We use three different assumptions for the investment returns each year: low is 5%; medium is 6%; and high is 7%. The low and high returns are not minimum and maximum returns - the returns could be lower or higher than these. The example figures above are calculated using the medium rate.
  3. Annuity figures are single life annuities, based on a female life, aged 60. Income is payable monthly in arrears without guarantee.
  4. Annuity figures assume a fund value of £10,000. No tax-free cash has been taken away from the fund which would otherwise reduce the expected annuity by up to 25%.
  5. If you are older or younger than shown in the examples above, your pension will be different.
  6. We have based the examples on pension annuity rates current as at 01 December 2006.
  7. Annuity figures quoted are shown gross. The tax treatment depends on individual circumstances and may change in the future.

Please read the Key Features documentation and your personalised illustration for further information about our annuity products.

Close this Window