Annuity income drops 14% since January

The combined effect of falling share prices and gilt yields has sliced value from both pension investments and annuity rates. A 65-year-old man with a £100,000 pension pot can only secure an income of £926 per year less than in January, according to Hargreaves Lansdown. Today, the FTSE fell below 5,000 between opening and midday, shaving billions from share prices. At the same time, the Government Actuary Department (GAD) rate, which is used to calculate annuity and income drawdown rates, fell to its lowest ever level of 2.75% for October. This is due to the drop in 15-year gilt...