Annuity rates see first increase in two years

MGM Advantage's annuity index revealed average rates increased by 3% in the first quarter of 2013 following the introduction of gender neutrality. MGM Advantage distribution and marketing director Aston Goodey said: "This is some much needed good news for people looking to retire and convert savings into income." However, Goodey warned there was a "sting in the tail" as annuity rates will remain low for the foreseeable future. Over a typical 18-year retirement, a pension pot of £50,000 with a conventional, level annuity would generate an average income of £2,875 and a total income ...