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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Retirement

Retirement tax planning and the issue of underspending

Retirement tax planning and the issue of underspending

Retirement planning Q&A

Professional Adviser
clock 12 October 2026 • 6 min read
Partner Insight: PruFund arrives on Scottish Widows Platform

Partner Insight: PruFund arrives on Scottish Widows Platform

How integrating PruFund onto the Scottish Widows Platform expands retirement options for advisers without increasing administrative burden

Ross Easton, Head of Platform Propositions, Scottish Widows
clock 05 October 2026 • 3 min read
The conversation that has to change with the 100-year life

The conversation that has to change with the 100-year life

'Advisers need to continue to challenge the cliff-edge narrative directly with clients'

Graeme Bowden
clock 24 September 2026 • 4 min read