Prudential has topped the Annuity Bureau's August annuity rate tables within specified targeted bands.
A 60 year-old male with a £100,000 annuity can expect a £6,759 yearly income from Prudential in the August tables, compared with last month's best rate of £6,667 from Legal and General.
Smokers continue to benefit from the best rates of £7,918 a year from Reliance Mutual, up £89 on last month's figures.
Peter Magliocco, associate regional director at the Annuity Bureau, says: "Whilst Pru are competitive within certain categories for conventional annuities based on age, fund size and annuity shape their overall objective is to make annuitants aware that improved life expectancy means that you can be a long time in retirement. Will a level, conventional annuity still deliver value for money for a client fifteen to twenty years into retirement or should alternative options be explored?
"People retiring now are really benefiting from rising interest rates with it feeding through into sharp rises in retirement income. It may be a bad time to be a mortgage holder - but August looks to be the best month so far this year to retire, from a rate perspective, and there is still the potential for further annuity rises if interest rates continue to climb."
Last week Prudential published its interim results, which show the provider’s UK retails sales grew by 10% in the first half of the year.
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