Annuity providers marginally increased single life annuity rates this month following the rise in gilt yields to just under 3%, figures have shown.
Statistics from Alexander Forbes Annuity Bureau showed Aviva, Canada Life, Hodge Life and Prudential all increased rates this month. L&G was the only provider to maintain rates at £5,338.20.
Canada Life upped rates by £51.96 to £5,393.52, closely followed by Hodge Life who jumped from fourth to third position by increasing rates £40 to £5,341.
Top place Aviva increased rates by £20 to £5,540. (All figures based on male, aged 60, level, £100,000 purchase).
Alexander Forbes Annuity Bureau head Gemma Goodman said: "April saw the first uplift in annuity rates for some time as gilt yields rose to just under 3% in the middle of March. As expected, providers have not made big changes to their annuity rates to reflect the higher gilt yields, but they will be watching the market carefully.
"This is the first significant bounce in gilt yields the market has experienced in sometime, gilts reached an all-time low of 2.25% earlier this year, so this rebound is a positive sign that the annuity market is recovering."
She added further improvements in rates were expected in coming weeks.
Inflation-linked annuities also showed minor rate improvements and rates for smokers remained largely stable.
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From 6 April 2019