08 February 2011
According to Alexander Forbes Annuity Bureau, annuity rates have
improved.
Figures show, an annuity for a man aged 60 with a £100,000
pension pot would purchase a pension of £6,170 per year from
Aviva which is an increase of £20 compared to January's
figure.
Gemma Goodman, head of operations at Alexander Forbes Annuity
Bureau said:
"It is good to see annuity rates continuing to rise, even by a
small amount. Annuity rates have been falling steadily in recent
years as people live longer and inflation and the increased cost of
living will clearly have a further negative impact on income in
retirement. However, in spite of the pressures currently facing the
industry, annuity rates between providers continue to differ
widely."
Gemma Goodman also warned about the impact of new European Union
equality legislation. See our news
story of 1st February 2011 for further information
on this.
