Annuity rates need to increase by 6% to make up 'lost' income

According to retirement specialists MGM Advantage, the ‘lost' income from delaying an annuity purchase by two years could take between 37 and 41 years to recoup if annuity rates don't improve over the next few years. The report looked at whether it could pay to delay your annuity purchase in the hope that rates will continue to improve for a chance to get better income in the future. Andrew Tully, pensions technical director of MGM Advantage, said: "We have seen annuity rates improve over the first half of the year, from their historic lows in 2012, but the long-term outlook for rates...