More uninteresting and negative news about annuity rates. They continue to decline amid falling Bank of England interest rates. This is not good news for retirees looking to secure a healthy retirement income.
Unfortunately, annuity rates have fallen quite significantly over the course of this past month, showing level annuity returns are really coming under pressure, according to industry experts. Indeed, the best level annuity return, offered by Norwich Union (now Aviva), fell by £320 to £6440 per year.
Income from the likes of index linked annuities also fell, with the best rate seen in April from Canada Life of £3880 per year being some £40 down compared with the previous month’s best annuity rate from Norwich Union. Even smoker’s rates declined substantially, with the best rate falling by £615 to £7199.
It really is important that people approaching retirement should shop around for the best annuity quotes as the difference between the best and the worst annuity could make hundreds or thousands of pounds difference to a person’s annual annuity income.
However, that is not the end of the story. With falling annuity rates it is even more important that you are aware of the other retirement options available to you. There is every likelihood that if you knew more about what is out there that you could well find it better not using your pension fund to buy a lifetime annuity.
