Annuity rates continued to rise in the second quarter, with a bump of 2.4%, however, this compares with a 15% fall in the past three years, according to numbers from MGM Advantage.
This means someone would need a pension pot worth about a quarter more today to generate the same annuity income as someone who retired in 2010. MGM Advantage said overall rates were up 5.6% since December 2012 but the trend was unlikely to continue. Sales and marketing director Aston Goodey said: "Although this is good news, annuity rates have only recovered the ground lost in the second half of 2012. We are also not even close to the rates seen even just three years ago, meaning people approaching retirement will face some difficult decisions." MGM Advantage (pictured) said today...
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