After months of historically poor annuity rates, six providers have increased their offers, according to the Hargreaves Lansdown Annuity Index.
The index itself has risen for the first time since June 2009, with a £100,000 fund being worth a level annuity of £6,428 for a 65-year-old man compared to £6,291 last month.
Hargreaves Lansdown urges people in need of secure incomes to annuitise now before the combined inpact of Solvency II, deflation, more quantitative easing (QE) and the potential for unisex annuities, to be decided by the EU next year, hits UK annuity rates.
Those with a little more flexibility should consider buying their incomes in stages using fixed term annuities to cash in on any future rises in annuity rates.
"Annuity rates have ticked up but this is not necessarily the start of a sustained trend," says Laith Khalaf, pensions analyst at Hargreaves Lansdown.
"The case for them falling back in the near term is as strong, if not stronger, than the case for further rises."
'Life catches up with us in the end'
‘Personalised Predictive Analysis’ tool
Summer series continues
Both start in August