Current Annuity Rates in Ireland?

I

ivan

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I've searched the web without success for this information, and would prefer not to get involved with people trying to sell annuities just yet.

What annual income could I expect from €100,000 payment for annuity with following conditions or similar:

Male aged 65 with wife aged 63. Two lives. Escalating at 3% p.a.
 
Go to the following website: www.pensionchoice.ie click on the tab for personal quotations and then select Guaranteed Pension Plan Quotation. This is Irish Life's website for annuity rates. It is designed for use by brokers & intermediaries and as such has some jargon, but play around with it and you should get what you need.
 
Hi Ivan,

Bill Tyson had an article about annuities in yesterday's Indo (free registration req.) which might be of use to you.

The table that's mentioned in the piece is available only in the hard-copy version of the newspaper but it has a price comparison between providers when you purchase an annuity for €100,000.
 
Hi All,

A friend has just been offered 5.5% annuity, 10 year guarantee, single life, no escalation. 60 year old male. Asked my opinion, but I don't know enough about pensions to be honest to offer advice. He has a spouse, with a pension of their own but no children, and property investment too so an ARF while a worthwhile consideration, not hugely attractive to him. Not really worried about leaving an inheritance it seems.
5.5% without future hassle, sounds okay to me but I did say I would post here and ask. He has been liaising with a financial advisor too but would value unbiased opinions. Pot is circa 400k after tax free lump sum.
 
There are a few existing threads about annuities versus other options in case they're worth searching for and reading. Here's a recent one:

Are annuities back on the table

Hi, Wife approaching 70 with a pension pot of 200k (after 25% tax free sum). Presumed ARF was the way to go but an annuity quote of 10k per annum (with 50% to surviving spouse upon death) got us thinking. It's equivalent to the 5% yearly take from an ARF, obviously without the possible...
www.askaboutmoney.com
 
Has he 2080 Prsi contributions in order to gain a full contributury state pension at age 66 ?

By taking out an anniuity he might end up leaving a big inheritance to the Annuity provider if he dies at a relatively young age.

He presumably has a steady income from his property investment and can get a state pension at age 66.

If he opts for an ARF he can draw down large amounts while he is still active and healthy and travel and enjoy the finer things of life.

Beyond age 66 he has the security of a state pension + property income.

He doesn't need the security of an Annuity.
 
The projection from my Irish Life pension for a 2% escalating annuity from age 65 with 5 year guarantee is €27.93 per €1.

I would think that 5.5%, or €18.18 per €1, from age 60 albeit not indexing for inflation, is a pretty good deal and the threads above would seem to bear that out.
 
S class said:
Has he 2080 Prsi contributions in order to gain a full contributury state pension at age 66 ?

By taking out an anniuity he might end up leaving a big inheritance to the Annuity provider if he dies at a relatively young age.

He presumably has a steady income from his property investment and can get a state pension at age 66.

If he opts for an ARF he can draw down large amounts while he is still active and healthy and travel and enjoy the finer things of life.

Beyond age 66 he has the security of a state pension + property income.

He doesn't need the security of an Annuity.
Click to expand...
There's always the option of using the ARF to buy an annuity once the state pension is secured.
 
Armada said:
Hi All,

A friend has just been offered 5.5% annuity, 10 year guarantee, single life, no escalation. 60 year old male. Asked my opinion, but I don't know enough about pensions to be honest to offer advice. He has a spouse, with a pension of their own but no children, and property investment too so an ARF while a worthwhile consideration, not hugely attractive to him. Not really worried about leaving an inheritance it seems.
5.5% without future hassle, sounds okay to me but I did say I would post here and ask. He has been liaising with a financial advisor too but would value unbiased opinions. Pot is circa 400k after tax free lump sum.
Click to expand...
Seems a good rate to me…slightly better than my best of 5.35% at 59 about 10 months ago. Also 10 year guarantee, single life and no escalation. Who is the provider by the way?
 
S class said:
Has he 2080 Prsi contributions in order to gain a full contributury state pension at age 66 ?

By taking out an anniuity he might end up leaving a big inheritance to the Annuity provider if he dies at a relatively young age.

He presumably has a steady income from his property investment and can get a state pension at age 66.

If he opts for an ARF he can draw down large amounts while he is still active and healthy and travel and enjoy the finer things of life.

Beyond age 66 he has the security of a state pension + property income.

He doesn't need the security of an Annuity.
Click to expand...
Yes full 40 years @2080 and spouse the same
 
Should also add that his spouse has just bought an annuity, (half his pot) but had a guaranteed annuity rate of 9.47% as she started her pension earlier - so he said they were advised that it was a no brainer. Single life again, no escalation and 5 year guarantee. She is also aged 60
 
Hard to disagree with S class, no real need for an annuity here. Setting up an ARF won’t be that much more effort, surely? But would be available to tap for any extra spend - trip of a lifetime, etc.
 
Thank you all. I have relayed the information to him and he is now seriously considering an ARF as very valid points were made. Next question is, can anyone recommend an advisor with whom you have had dealings with that he could possibly liaise with? Please ignore, if not an appropriate request.
 
If he is happy to choose his own ARF funds and risk level he could open an execution only ARF from PRSA.ie, ferga.com or LA Brokers.

He should be able to get a deal with no set up fee, 100% allocation and 0.5% annual management charge.

If he wants to pay for advice there are several advisors who post on AAM.
 
Looks like an old Caledonian Life policy with a GAR as the rate is probably in the region of 0.75%/1% above current open market rates.


Gerard

www.prsa.ie
 
S class said:
If he is happy to choose his own ARF funds and risk level he could open an execution only ARF from PRSA.ie, ferga.com or LA Brokers.

He should be able to get a deal with no set up fee, 100% allocation and 0.5% annual management charge.
Click to expand...

Are these fees really available?
 
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