Income levels from standard annuities have fallen to all-time low levels just three weeks after pensions freedom and choice was introduced, according to Moneyfacts research.
The website said retirees who had delayed making a retirement income decision ahead of pensions freedom would now be counting the cost of delay if they now chose to buy an annuity contract. It said annuity providers faced "challenging pricing conditions" due a sharp fall in gilt yields and lower demand due to pensions freedom. Annuity rates have been cut dramatically as a result, it added. The average annual income payable from a standard annuity fell by 5.7% in 2014. Moneyfacts said there had been an even more marked decline in 2015. The average annual income payable on a single l...
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