How accurate are annuity tables?

11th January 2012

When it comes to working out what is the best annuity plan for you, it really helps to compare and contrast different companies against each other. Each day the FSA publishes a set of annuity tables which are designed specifically for this purpose and can really help potential annuity purchasers to identify where they may be likely to receive the best income.

Although this can be a great help to many people who are looking for an annuity provider there are also many considerations that this table doesn’t make. Firstly the information provided is only that give by companies who have released their data, so there could be potentially better deals out there that are not listed on this table.

Secondly, the annuity tables are very specific and do not provide a great deal of information on overall packages which could be offered by annuity providers.

How should I use an annuity tables?

As a starting point, annuity tables can give you access to a range of rates and options for annuity packages and this can be a great way to start your annuity hunt, but you mustn’t forget that many companies do no list on these annuity tables and therefore you should consider shopping around before you lock yourselves into one of these annuity rates.

As these tables change on a daily basis it can be difficult to use this information unless you are planning on make your decision quickly, but they can be used as a guide to see what type of rates are available and what different types of benefits you may be eligible for.

Lack of enhanced annuity rates

A major downside of many current annuity tables is that they don’t take into consideration enhanced annuity rates which many potential applicants could be eligible for. Enhanced annuity rates can increase a retirement income significantly and are generally available to any individuals who currently have bad lifestyle habits or who may be of poor health, or have long term health problems.

Enhanced annuities work on the principle that the annuity rate won’t be paid out for as long as a general annuity rate and therefore could be a great deal higher than just applying for a standard annuity.

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