Annuity rates reach six-year peak

The firm says annuities offer two improvements in value hidden within six year high rates. For example, the average 65 year old man is expected to live two years longer than in 2002, plus a standard conventional annuity excludes many more enhanced or impaired retirees than in 2002. These factors combined add an extra 10% to the value of today’s pension income, says Annuity Direct. Furthermore, if savers’ pension funds are invested in cash, as many company schemes are at retirement, savers can expect good value from annuities or other pension products, it adds. The firm believes sav...