Annuity rates hit 14-year high after 52% increase in nine months

A benchmark annuity of £100,000 at age 65 would now pay £6,873

Hope William-Smith
clock • 1 min read

A 52% increase in average annuity rates this year has pushed them to a 14-year high, research from Canada Life shows.

The insurance and financial services company today (5 October) said these figures bring the break-even point - the point at which someone would receive your original pension back through income - down by seven years to 15. "It's been a record-breaking year for annuity rates, with incomes at a level we haven't seen for over a decade," said retirement income director Nick Flynn. "In the current economic climate, where else could you receive nigh on 7% risk free income in retirement?" A benchmark annuity of £100,000 at age 65 would now pay a guaranteed income of £6,873 a year, Canada Lif...

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