With-profits annuities return more, says Pru

Following the publication of Prudential’s first Annuities Index based on research by Defaqto, the insurer claims pensioners choosing a conventional annuity are 4% worse off than pensioners retiring a year ago because of the decline in annuity rates. According to the research, based on the purchase of a £100,000 conventional annuity, a 65 year-old man would retire today on an average annual income of £6,540 compared to £6,730 a year ago, representing a drop of £190 or 2.8%. Meanwhile, a 60 year-old woman can expect an average annual income today of £5,330 compared to £5,550 in 2005, whic...