The tax free lump sum from the pension scheme and any other lump sum can be used to buy an annuity. In this case it is called a purchased life annuity (PLA) and only the interest element of the proceeds is taxable (about half the proceeds are capital repayment).

The provider of the annuity normally deducts tax at the standard rate of 22% so, if your marginal rate is higher or lower, you will have to pay the extra or claim a refund.

Types of annuity

There is a wide choice, including:

• Single life, the simplest type, which pays a flat rate over the remaining life of the annuitant. You need to remember that, even with inflation of only 3% a year, over 20 years the income will have fallen by 40% in real terms.
• Joint life, which continues until the second death of a Couple, either at the same rate or a lower rate after the first death.
• Impaired life, where you get a higher amount because you have a terminal illness.
• Escalating, where the payout increases by a fixed percentage each year, but starts
  Tips On How To Stop Junk Email
  Anyone with an email address has had to worry about how to stop junk email, and they are probably not ready to admit defeat, even though it’s much like the Energizer Bunny. It just keeps going and going. How your email deals with junk depends on what service you use, and can also depend on what you have on your computer. There are a few thi
  can be used to buy an annuity. In this case it is called a purchased life annuity (PLA) and only the interest element of the proceeds is taxable (about half the proceeds are capital repayment).

  The provider of the annuity normally deducts tax at the standard rate of 22% so, if your marginal rate is higher or lower, you will have to pay the extra or claim a refund.

  Types of annuity

  There is a wide choice, including:

  • Single life, the simplest type, which pays a flat rate over the remaining life of the annuitant. You need to remember that, even with inflation of only 3% a year, over 20 years the income will have fallen by 40% in real terms.
  • Joint life, which continues until the second death of a Couple, either at the same rate or a lower rate after the first death.
  • Impaired life, where you get a higher amount because you have a terminal illness.
  • Escalating, where the payout increases by a fixed percentage each year, but starts
    Bankruptcy Information - A Helping Hand In Trying Times
    Bankruptcy is a phrase heard and used by many. Individuals tend to have pre-conceived notions about bankrupts that they are individuals who are totally broke. But bankruptcy information can be a real eye opener for debtors who are contemplating bankruptcy and individuals who are seeking information about bankruptcy. It helps debunk all the m
    the standard rate of 22% so, if your marginal rate is higher or lower, you will have to pay the extra or claim a refund.

    Types of annuity

    There is a wide choice, including:

    • Single life, the simplest type, which pays a flat rate over the remaining life of the annuitant. You need to remember that, even with inflation of only 3% a year, over 20 years the income will have fallen by 40% in real terms.
    • Joint life, which continues until the second death of a Couple, either at the same rate or a lower rate after the first death.
    • Impaired life, where you get a higher amount because you have a terminal illness.
    • Escalating, where the payout increases by a fixed percentage each year, but starts
      Powerful Sales Presentations - Start Your Presentation with a Bang
      There are many opportunities to gain from delivering a powerful presentation to an audience. The presentation you deliver can help clients understand the value your company provides, which can lead to new business, and additional business opportunities. It can also elevate the image of you and your services by showing your expertise and prof
      flat rate over the remaining life of the annuitant. You need to remember that, even with inflation of only 3% a year, over 20 years the income will have fallen by 40% in real terms.
    • Joint life, which continues until the second death of a Couple, either at the same rate or a lower rate after the first death.
    • Impaired life, where you get a higher amount because you have a terminal illness.
    • Escalating, where the payout increases by a fixed percentage each year, but starts
      Modern Clear Coats, Auto Detailers and visit to Lexus of North America
      We visited Lexus USA, home of the Lexus North America Head Quarters to help us better understand the latest innovations in automotive clear coast. As professional auto detailers we must know our customers cars and finishes. We are continually studying the different materials and automotive finishes on vehicles to determine the best after mar
      ple, either at the same rate or a lower rate after the first death.
    • Impaired life, where you get a higher amount because you have a terminal illness.
    • Escalating, where the payout increases by a fixed percentage each year, but starts lower than a flat rate annuity. With an escalation rate of 3%, it takes some ten years for the payout to catch up and a further ten years to recover the shortfall over the first ten.

    Investment related, that is in a unit linked or with profits fund. Here the income will vary depending on performance, which may not suit you. (With profits gives a smoother performance; unit linked is more volatile.)

    In the case of with profits annuities, you usually have to choose a growth rate (called the hurdle rate) of between 0 and 5%. If the bonuses are consistently below the hurdle rate your income can fall, so it pays to choose a low rate.

    However, it is possible to get a with profits annuity which gives a guarantee, such as that the payout will never fall below the starting amount, naturally at a lower starting figure.

    In choosing between flat rate and escalating, you need to think about how long you may live, taking into account your health and your family history of l