Level annuity

A level annuity is a type of annuity that pays out the same amount each year for the rest of your life. The main drawback with a level annuity is that your purchasing power becomes reduced as the amount you receive falls in real value as inflation increases.

Level annuities are sometimes known as standard annuities and pay a higher income at the beginning than increasing annuities. However, if you are thinking of investing in a level annuity then you need to think carefully if you could manage on an income that never increases with inflation.

	Lending to small businesses at highest level for two years Lending to SMEs grew at its fastest pace on record in June, but mortgage approvals for homes has fallen over the month, creating an overall mixed picture.
	FSA launch inquiry into annuity market The Financial Services Authority has launched an inquiry into the annuity market to investigate whether customers are being encouraged to scour the market for the best deal.
	First-time buyer mortgage lending at highest level since 2007 The Council of Mortgage Lenders reports that lending to first-time buyers is at its highest level since 2007.
	Mortgage lending in April at highest level for five years The Council of Mortgage Lenders (CML) reports mortgage lending went up by 4.3 per cent in April compared to March and by 22 per cent compared to April 2012.
	Pension take up falls to lowest level since 1950's New figures from the Office for National Statistics have revealed that British workers are saving less than ever for retirement in this tough economic climate.