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How do we detect a rate change?

Early each morning our systems send out a number of quote requests to the annuity providers based on a range of quote criteria. By comparing the results we receive with the figures from the previous morning, we are able to identify whether a rate change has occurred.

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What quote criteria do we use?

To accurately identify whether a rate change has occurred, we need to send quote requests based on a number of criteria. We use every combination of the following criteria to identify a rate change;

  1. Single or Joint Life
  2. Annuitant gender (male or female)
  3. Fund Value (£10,000, £50,000, £100,000)
  4. Escalation (Level, RPI, LPI)

The following criteria do not change for each quote request;

  1. Annuitant age (65)
  2. Dependant age (65 where required)
  3. Guarantee (0 years)
  4. Postcode (CM19 5FP)

Which providers do we monitor?

We currently monitor the following provider’s rates:

  1. Canada Life
  2. Legal and General
  3. Aviva
  4. Prudential
  5. Aegon | Scottish Equitable
  6. Hodge Lifetime

Rates increase of a decrease?

Our rules are easy;

  1. If all of the rates for a particular provider go up, we declare a rates increase
  2. If all of the rates for a particular provider go down, we declare a rates decrease
  3. If some rates go and some rates go down, we say there has been a rates change.

If a particular provider’s rates have changed by less than 0.5%, we to not declare a rate change. Periodically providers will update their life expectancy tables, vary their rates in accordance with RPI or LPI levels or make small internal changes to their quote engines which can affect the income received, but these changes do not count as official rate changes.