Level annuity rates have edged downwards, suggesting that the annuity market has reached the end of its long bull run and reverted to the longer-term trend of falling rates, according to Alexander Forbes Annuity Bureau.
The top level rate from Norwich Union has dipped by £110 to £7,040 p.a. (male 60, level escalation, £100k purchase). While Legal & General has held its rates, the three remaining top five providers have also made slight cuts. Nevertheless, the current best rate is still £275 p.a. higher than the best available a year ago, when Aegon Scottish Equitable was offering £6,765. David Marlow, director, Alexander Forbes Annuity Bureau, said: "With annuity rates slipping and pensioner inflation running at possibly double the official rate, retirees must make the most of the Open Market Option and...
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