Annuities continue to make a comeback with rates up 44%

Canada Life looked at benchmark annuity rates from 1 January this year until 1 December.  The rate for a £100,000 purchase price for a healthy single life with a ten-year guarantee was almost 4% for a 60-year-old at the beginning of this year. By the start of December it had reached 5.9%. Similarly, for a 65-year-old with the same profile it rose from 4.5% to 6.6% and for a 70-year-old it rose from 5.25% to 7.2%. Retirement income director Nick Flynn commented: "Annuities have made quite a comeback this year, with guaranteed lifetime income back in vogue following the strong improv...