Highest Annuity Rates in 5 Years?
Hi everyone,
thought I’d try and bring you a little cheer and as spring begins to blossom into early summer, as with everything - a little sunshine goes a long way. If you’re enjoying your retirement already and planning a round of golf or sneaking off to cast a fly on your favourite loch or chalk stream you already know what it means to be favoured with a good retirement income.
If you’re not quite at that point yet, today’s piece is a little update on what you’ll buy with your pension fund when it matures - mostly that means an annuity.
One upside of the credit crunch is that annuity rates are now at a five year high. Insurers are involved in a rate war with 17 rate rises in the last month alone, with 88% of them propelling upwards. According to Nigel Callaghan from Hargreaves Lansdown the pensions analysts, the yield for a 65 year old male is now 7.66 per cent, 11 per cent higher than the yield 2 years ago which was 6.92 per cent. Product providers fighting for the top spot include Prudential, Legal & General and Scottish Equitable.