Annuity rates form the crux of annuity contracts. FSA annuity rates are the deciding factors for how much income (annuity) you can receive based on your pension and other factors. Annuity rates are a function of economic activities and the fiscal policy of a nation, and therefore exactly how they are calculated are usually beyond the understanding of common folks. However, what one needs to understand is what can affect annuity rates, and how.
Annuity rates differ based on the kind of annuity contracts as well as certain personal traits of buyers. Smokers or those with serious medical conditions get higher rates. Purchasing an annuity later in your life may be labelled bad financial planning on your part, but will definitely get you higher rates. Similarly, rates differ from single and joint or level and escalation annuities.
A general rule of thumb is that the longer you have to live, the lower your annuity rate would be, simply because the provider is going to have to pay out that much longer and that much more. Therefore, there are quite a few changes across providers too.
Of prime importance, however, is knowing whether the rates you’re seeing are authentic or not. FSA annuity rates tables are authenticated and released by the Financial Services Authority, and are the ones used by providers. Therefore, it is extremely important to verify the rates you are looking at with the ones on the FSA website before making any decisions.
