From: john boyle 
Newsgroups: uk.finance
Subject: Re: Personal pension strategy
Date: Thu, 12 May 2005 19:56:43 +0100

In message , Tim 
 writes
>Don't forget that an "annually in arrears" annuity should pay each year
>***more than 12 times*** the amount that a "monthly in arrears" annuity pays
>each month!!
>
>If you die ten-years-and-one-day after starting an "annually in arrears"
>annuity, you'll receive 10 years' payments.
>If you die ten-years-and-one-day after starting a "monthly in arrears"
>annuity, you'll receive 120 months' payments.
>But the 10 years payments should exceed (by more than is required to combat
>inflation) the 120 month's payments....

I take your point. The question is, of course, the what the NPV of the 
monthly payment is versus the annual payment using a constant discount 
rate.
-- 
John Boyle