Annuity rates have risen this month for the first time in almost a year, according to the JLT Annuity Bureau.

Aviva’s level annuity rates increased by 3 per cent or £154.32 a year on February’s rate and the other top four providers also increased their rates.

Inflation linked annuities have seen their rates rise this month also, with Legal & General seeing an increase of £78.84 and Aviva offering a £117.72 increase in what it was offering last month.

There was also a rise in smokers’ rates, with Just Retirement offering rates of £5,937, up £275 from the previous month. However, experts have warned that this rise should not be seen as a new trend.

JLT Annuity Bureau director Richard Williams said: “From time to time changes in gilt yields can give a valued boost to short term rates and this has happened in February with most providers increasing their rates. However, this could be short lived as gilt yields are down almost 10 per cent off their high point in the middle of last month.

“However with the new ABI Code of Conduct, which came into force at the beginning of March, more people are going to shop around and feel the benefit of doing this in their retirement.”

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