Delaying annuity purchase 'not worthwhile' as rates unlikely to rise

MGM Advantage said gilt yields and annuity rates would remain low for the foreseeable future and delaying buying an annuity by two years could see retirees miss out on thousands. It said a 65-year-old man with a £100,000 pot could buy a yearly income of £5,901 today. A 67-year-old man with the same pension could get a better income of £6,165. By delaying annuity purchase he has increased his income by £264 a year - but he has also missed out on two years total income, equating to £11,802. It would take about 44 years to recoup the lost money, while average life expectancy for a man ...