Single-life annuity rates have dropped this month, while smokers’ rates have slightly recovered from the fluctuation they experienced in the last few months, the Annuity Bureau has found.

Most single-life annuities have dropped this month, with L&G lowering its rate with £226 and Hodge Life by £180, while Aviva increased its rate by only 96p. The inflation-linked annuity rate of Standard Life remained stable at £2,890, while L&G reduced its rate by £235.

For smokers’ rates, the top rate in September was offered by Reliance Mutual at £6,721, but this had dropped by around £1000 in two months, as the highest rate in November was £5,756, offered by Just Retirement. However, this month the pictures is slightly better, as Canada Life tops the board with a rate of £6,099.

The Annuity Bureau head Gemma Goodman said: “Fluctuations in the rates offered to smokers over recent months have been huge. In anyone’s language, drops of almost £1,000 in a few months is significant, to say the least. However, this month, smokers have been given an early Christmas present – at least in regards to their annuity rates thanks to Canada Life re-establishing itself at the top of the pecking order with £6,099.

“Movements such as these underline just how enormous the annuity fluctuations can be in today’s economic climate. It also shows just how important it is to shop around – these figures should bring home to anyone contemplating taking an annuity that they need to get it right first time, never has it been so important to make the right decision at this crucial stage in your life.”

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