Annuity rates have dropped significantly during the last month, showing level annuity returns are coming under pressure, Alexander Forbes Annuity Bureau says.
The best level return, offered by Norwich Union, fell by £320 to £6440 per year. Income from index linked annuities also fell, with the best rate in April from Canada Life of £3880 per year being £40 down compared with the previous month's best rate from Norwich Union. Smoker's rates also declined substantially, with the best rate reducing by £615 to £7199. Alexander Forbes Annuity Bureau director Tim Whiting said: "It has never been more important for people retiring to shop around for the best annuity as the difference between the best and worst annuity could make hundreds of pounds...
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