Gulf between best and worst annuity rates 'still growing'

The firm said the gap between the top and bottom rates had widened from 31.1% in December last year up to 34.93% in July this year. The data is from Association of British Insurers (ABI) data designed to give a snapshot of the annuity market. Hargreaves said on a typical annuity purchase value of £21,000, over a 20 year retirement this equates to £7,162 of lost income. It also looked at competition in the market, analysing the distribution rates to see how many companies offered terms which are, if not the best, at least somewhere close to the best rates. On average, it said, more ...