DB APTA and future annuity

Hi all

I am working on an APTA where one of the solutions we are considering is using some of the CETV to buy an annuity at a future date (7 years later than scheme NRA). Reading https://www.handbook.fca.org.uk/handbook/COBS/19/Annex4C.html it states that stanardised assumptions must be made modelling annuity purchase, based on this https://www.handbook.fca.org.uk/handbook/COBS/13/Annex2.html#DES210

I don't fancy hunting for all that info and trying to cobble together an annuity rate.

If I, say, ran a dummy Selectapension DB transfer report with NRA that matched the date that we're proposing for the annuity purchase, presumably that would have all of the correct assumptions built in and could I then use the projected annuity and fund required to secure it to extrapolate the annuity rate?

Does anyone have any practical experience of doing this?

Many thanks

Outsourced paraplanner for The Paraplanners.  President of the Scottish Petanque Association


  • I like that Selectapension now offer actual annuity rates so using a dummy age would work - and that's what I do on getting an rate to show what a "mirror" annuity would look like (using fund required and scheme pension v estimated fund and using the rate provided by the former) in today's terms as most of ours are at/just about at retirement (albeit earlier than scheme NRA).

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