Annuity rates continued to rise in the second quarter, with a bump of 2.4%, however, this compares with a 15% fall in the past three years, according to numbers from MGM Advantage.
This means someone would need a pension pot worth about a quarter more today to generate the same annuity income as someone who retired in 2010.
MGM Advantage said overall rates were up 5.6% since December 2012 but the trend was unlikely to continue.
Sales and marketing director Aston Goodey said: "Although this is good news, annuity rates have only recovered the ground lost in the second half of 2012. We are also not even close to the rates seen even just three years ago, meaning people approaching retirement will face some difficult decisions."
MGM Advantage (pictured) said today's retirees need a pension pot worth 24% more than someone who retired three years' ago to generate the same annuity income.
Goodey added while rates are increasing "all of the signs indicate that rates will continue to remain low for some time to come".
"The continuing pressures of Solvency II, improving longevity and low returns on gilts and bonds will continue to hamper any sustained recovery in rates.
"The market has found its feet following the introduction of gender neutral pricing, with providers more comfortable with the mix of business they can take on. With new players also coming into the enhanced market, we may see rates pushed up in the short term.
"But looking ahead to the longer term we are unlikely to reach the level of rates seen five years ago," he said.
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