Link to the article: Channel 4 News
By Channel 4 News
Quantitative easing by the Bank of England is forcing more people to consider annuity products that are linked to lifestyle, a consultancy firm said today.
The enhanced annuity products – which are used to convert pension pots into a fixed income – will reach total sales of £1.8bn this year, according to Watson Wyatt.
While customers have traditionally taken standard annuities solely linked to the life expectancy of their gender, the last 12 months have seen a record rise in the numbers of enhanced annuities being agreed.
Enhanced annuities pay more than conventional annuities because they take into account life expectancy reducing factors such as: whether you drink, smoke, where you live, or even if you have a risky occupation.
The pension company effectively gambles that, for example, 20-a-day pensioners will not live as long as pensioners who regularly exercise, so agree to pay out more annually for an unhealthy lifestyle.
Watson Wyatt say the total value of enhanced life annuities sold in the first quarter of this year was up by nearly 10 per cent on the same period last year, at £443m.
They say the reduction in gilt yields, brought on by the Bank of England’s decision to begin quantitative easing, has reduced annuity rates, forcing people to consider how to get the most out of their retirement income. This has led record numbers to look at enhanced annuities.
You are eligible for an enhanced annuity if you meet the requirements set by your pension provider. They will look at your health, where you live and if you have a history of illness.
Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts
Friday, 29 May 2009
Thursday, 28 May 2009
Oil output curbs push up petrol prices
Link to the article: Channel 4 News
By Carl Dinnen
Pump prices are up, but Opec, meeting in Vienna, is unlikely to boost current output levels. Carl Dinnen talks to Paul Watters of the AA.
Since September petroleum exporters have reduced output by more than 4 million barrels a day, which has helped drive up prices.
In the UK the cost of a litre of petrol has nearly reached one pound. That means it has shot up by two and a half pence in just over a month.
By Carl Dinnen
Pump prices are up, but Opec, meeting in Vienna, is unlikely to boost current output levels. Carl Dinnen talks to Paul Watters of the AA.
Since September petroleum exporters have reduced output by more than 4 million barrels a day, which has helped drive up prices.
In the UK the cost of a litre of petrol has nearly reached one pound. That means it has shot up by two and a half pence in just over a month.
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