Annuity rates have continued to fall this month as a result of longevity trends within the UK, according to latest figures from The Annuity Bureau.
Despite offering the best rates for the month at £4,949 p.a. Aviva’s annuity rates dropped by £25 and over the year fell by more than 10 per cent. The Annuity Bureau stated that the difference could add up to £12,025 less for people retiring today.
Concerning inflation-linked annuities, Legal & General remained in top-spot this month offering rates of £2,803. Aviva’s rates were recorded at £2,698, a £26 drop in what it was offering last month.
Smokers rates improved however. Just Retirement offered a £263 increase in rates and offered the best results for the month.
The Annuity Bureau director Richard Williams said: “The long-term trend in annuity rates remains downwards as longevity increases, though from time to time changes in gilt yields can give a valued boost to short-term rates.”
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