Annuity rates post falls of 12%

Annuity rates slumped by around 12% during 2002, the second largest annual fall in the past eight years, according to research from Moneyfacts. Average rates for a male aged 60 buying a standard 'level without guarantee' annuity with a purchase price of £10,000 have dropped by £85 from £706 per year in January 2002 to £621 per year in December 2002. The top standard male rates reflect a similar picture reducing by £90 or 12.2% over the same time period. Female rates fared slightly better, falling by 11% during the same period.