Annuities have made a “comeback” this year, according to Canada Life, which found the average benchmark rate is up 44% since January and hit a 14-year high in October.
Canada Life looked at benchmark annuity rates from 1 January this year until 1 December. The rate for a £100,000 purchase price for a healthy single life with a ten-year guarantee was almost 4% for a 60-year-old at the beginning of this year. By the start of December it had reached 5.9%. Similarly, for a 65-year-old with the same profile it rose from 4.5% to 6.6% and for a 70-year-old it rose from 5.25% to 7.2%. Retirement income director Nick Flynn commented: "Annuities have made quite a comeback this year, with guaranteed lifetime income back in vogue following the strong improv...
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