IRESS launches annuity yield index as comparison tool

The IRESS Relative Annuity Yield Index compares the income yield of annuities with cash ISA rates and an example of a UK Equity Income fund as well as with what would be considered a sustainable withdrawal rate. The index's cash comparison was calculated by taking the annuity yield, minus the average cash ISA rate over 12 months, while the comparison the equity income was calculated based on the average 12-month yield for the UK Equity Income sector less the average annuity rate for that year. For the third measure in the index, IRESS UK managing director Simon Badley (pictured) expla...