Annuity rates down 1.5% in six months

In its latest Annuity Index, MGM suggests annuity rates have been falling, with standard annuities seeing a faster rate of decline. Average annuity rates fell 1.64% in the six months to 31 December 2009, with enhanced rates down 1.33%, while standard rates dropped 2.16%. The difference between top quartile and bottom quartile income payments grew, up to 64% in the latest index. Average enhanced annuities now pay around 22.7% more than standard annuities, compared to 21.5% in June 2009. This would mean an income difference over five years of £3,776 for the average man purchasing a ...